Process capability measurement is an important aspect of quality improvement to decide whether the process is capable of meeting the specification or not. The objectives of this research were to assess the case organization's process capabilities for quality enhancement. To conduct this research, the author has used purposive sampling for the selection of interviewees and random sampling methods for the selection of raw material and sample veneers and DOE/Taguchi technique for having an ideal combination of the control factors and their levels of the raw materials. For the defect rate analysis, the P-chart type of control chart was used and Minitab, statistical package for social science (SPSSV.27), and Microsoft excel soft wares have been used as a tool of analysis. In this study at C4, 16.58% of process failure or defect rate, 3.68 sigma level, and 14,557.45 of DPMO value was observed which indicated the process was relatively optimal than other combinations, stable and competitive but below the industry average. Among the sources of defects, machine and material were the vital few sources and also the defect rate prioritization in descending order looks like holes and cumulative defects, knife mark, splits, scratch, thickness variation defects, loose knot, insect attack and discoloration, gum pocket, sound knot, decay and grain tear out and pin knot defect rates has been observed. In this study, the researcher has assured the factory is incapable of producing ornamental plywood. Finally; the author has recommended further optimization research can be conducted on the same factors & levels used by this research and also with equal log volume. And also the researcher has proposed a quality improvement plan for the company‟s product quality enhancement. Keywords: Process control, process capability, six-sigma, DPMO, plywood.