Computational testing algorithmic procedure of assessment for lifetime performance index of products with two-parameter exponential distribution

Process capability indices (PCIs) are used to measure process potential and performance. Since the lifetime of products generally may possess an exponential, gamma or Weibull distribution, etc., so under a two-parameter exponential distribution, this study constructs a maximum likelihood estimator (MLE) of the lifetime performance index based on the right type II censored sample. Then the MLE of the lifetime performance index is utilized to develop the new hypothesis testing algorithmic procedure in the condition of known L. Finally, a practical example is illustrated to employ the testing algorithmic procedure to determine whether the process is capable.