Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2009.3775.3779AbdolshahM.YusuffR.M.HongT.S.IsmailM. Yusof B.122009920Classic process capability indices such as C_{a}, C_{p} and C_{pk} are well-known process capability indices, which are using widely. Since, process capability indices predict the capability of a process, they must have a significant relation with rate of rejects and losses. Studies showed that mostly process capability indices do not have a significant relation with rate of rejects or losses. Therefore, the loss-based indices are more appropriate and suitable indices to predict the capability of a process. In order to define a new loss-based process capability index, Taguchi loss functions were employed and this study proposed a novel process capability index called Taguchi-based Process Capability Index (TPCI). The methodology of this process capability index is based on standard rate of rejects for a capable process compared to other cases. Therefore, this study develops a new process capability index, which is Taguchi loss function-based and sensitive to losses. This new process capability index can provide a realistic and applicable metric to evaluate a process.]]>Hsieh, K.L. and L.I. Tong,2006Jeang, A. and C. Chung,2008Kane, V.E.,1986Kethley, R.B.,2008Leung, B.P.K. and F.A. Spiring,2004Lofthouse, T.,1999Naidu, N.V.R.,2008Pan, J.N.,2007Ramakrishnan, B., P. Sandborn and M. Pecht,2001Shu, M.H., H.C. Wu and B.M. Hsu,2005Taguchi, G.,1986