Capability analysis is a set of calculations used to assess whether a system is able to meet a set of requirements. Customers, engineers, or managers usually set the requirements, which can be specifications, goals, aims, or standards.

The primary reason for doing a capability analysis is to answer the question: “Can we meet customer requirements?” Or to be more specific: “Can our system produce consistently within tolerances required by the customer now and in the future?”

Capability analysis involves two entities: the producer and the consumer. The consumer sets the requirements and the producer must be able to meet those requirements.

Capability analysis can be used as structured communication that flows between producers and consumers. This communication happens up and down the supply chain and is useful in different contexts. For example, it can be useful when a manufacturer is considering the purchase of a new machine. It can also be useful when a producer is working through the production part approval process. And it can be useful during contract and pricing negotiations between a producer and a potential customer.

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