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Finite-Sample Decision Instability in Threshold-Based Process Capability Approval

Applications 2026-03-13 v1 Statistics Theory Statistics Theory

Abstract

Process capability indices such as CpkC_{pk} are widely used in manufacturing quality control to support supplier qualification and product release decisions based on fixed acceptance thresholds (e.g., Cpk1.33C_{pk} \geq 1.33). In practice, these decisions rely on sample-based estimates computed from moderate sample sizes (nn \approx 20-50), yet the stochastic nature of the estimator is often overlooked when interpreting threshold compliance. This study establishes a local asymptotic characterization of decision behavior when the true process capability lies near a fixed threshold. Under standard regularity conditions, if the true capability equals the threshold, the acceptance probability converges to 0.5 as sample size increases, implying that a fixed CpkC_{pk} gate embeds an inherent boundary decision risk even under ideal distributional assumptions. When the true capability deviates from the threshold by O(n1/2)O(n^{-1/2}), the decision probability converges to a non-degenerate limit governed by a scaled signal-to-noise ratio. Monte Carlo simulations and an empirical study on 880 manufacturing dimensions demonstrate substantial resampling-based decision instability near the commonly used 1.33 criterion. These findings provide a probabilistic interpretation of threshold-based capability decisions and quantitative guidance for assessing boundary-induced release risk in engineering practice.

Keywords

Cite

@article{arxiv.2603.11315,
  title  = {Finite-Sample Decision Instability in Threshold-Based Process Capability Approval},
  author = {Fei Jiang and Lei Yang},
  journal= {arXiv preprint arXiv:2603.11315},
  year   = {2026}
}

Comments

14 pages, 6 figures

R2 v1 2026-07-01T11:15:35.064Z