Assessing the Lifetime Performance Index of Products or Businesses with the Power Distribution Family

Abstract

In practice, lifetime performance index is a popular means to assess the performance and potential of their processes. Under the assumption of Power distribution family, this study constructs an uniformly minimum variance unbiased estimator (UMVUE) of the lifetime performance index which based on the type II right censored sample. The UMVUE of the lifetime performance index is then utilized to develop the hypothesis testing procedure. The testing procedure can be employed by managers to assess whether the lifetime of products (or businesses) adheres to the required level. Finally, three practical examples are illustrated to employ the testing procedure to determine whether the process is capable under a given significance level.