A Taguchi-based methodology was used to determine and optimize an industrial robot's process capability (i.e., accuracy, repeatability, and reproducibility). This effective and economical methodology was implemented by examining seven controllable factors (load, speed, distance, orientation, direction, height, and starting point). A noncontact three-dimensional (3-D) motion analysis system (WATSMART) was employed to measure the robot end effector's 3-D coordinates. The factors that significantly affect the test robot's process capability, its optimal operating conditions, and the process capability index were determined. Response surfaces and 3-D plots for the robot's process capability were developed to verify the estimated optimal factor-level combination and to provide information on the best achievable alternatives.