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Taguchi Loss Function pp. 110-111 , 604-607

Taguchi Loss Function pp. 110-111 , 604-607. Quality is variation from desired mean expressed as an economic loss function. Function is Loss at measure x = constant times distance from desired measure to x squared. Lx = k((x-T)^2).

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Taguchi Loss Function pp. 110-111 , 604-607

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  1. Taguchi Loss Function pp. 110-111, 604-607

  2. Quality is variation from desired mean expressed as an economic loss function

  3. 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

  4. Find k with a known cost at some measure, usually cost when out of specification (scrap, warranty)

  5. 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)

  6. 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

  7. Set parameters to make sure to minimize cost to company and customers

  8. Truncated curves, see accompanying excel sheet

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