Transcript Taguchi Loss Function pp. 112-114, 618-621

Taguchi Loss Function pp.
110-111, 604-607
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Quality is variation from
desired mean expressed as
an economic loss function
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Function is Loss at measure x =
constant times distance from
desired measure to x squared.
Lx = k((x-T)^2)
• k is the part of a Parabola equation that
controls how flat or vertical the wings are
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Find k with a known cost at
some measure, usually cost
when out of specification
(scrap, warranty)
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Can determine average cost per
unit with a process with a given
mean and standard deviation
• expected loss for process with mean x = k
times (variance+square of distance from
mean to target)
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Can utilize this for one sided
situations (better if bigger or
smaller)
• smaller is better than target L at x = k
times x^2
• bigger is better than target L at x = k time
1/x^2
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Set parameters to make sure
to minimize cost to company
and customers
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Truncated curves, see
accompanying excel sheet
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