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The Pp index is used to summarize a system's performance in meeting two-sided specification limits (upper and lower). Like Ppk, it uses actual sigma (sigma of the individuals), and shows how the system is actually running when compared to the specifications. However, it ignores the process average and focuses on the spread. If the system is not centered within the specifications, Pp alone may be misleading.

The higher the Pp value... ...the smaller the spread of the system’s output. Pp is a measure of spread only. A process with a narrow spread (a high Pp) may not meet customer needs if it is not centered within the specifications.

If the system is centered on its target value... ...Pp should be used in conjunction with Ppk to account for both spread and centering. Pp and Ppk will be equal when the process is centered on its target value. If they are not equal, the smaller the difference between these indices, the more centered the process is.

Also see Process Capability

Discussion thread: Capability indices - A Good, clear explanation