Taguchi Loss Funcation
Taguchi Loss Funcation
Introduction
• Significant body of knowledge associated with quality
sciences was developed in the UK as design of experiment
(DOE) and in the US as Statistical Quality Control (SQC)
and in Japan as Total Quality Control (TQC)
• Dr. Genichi Taguchi, Mechanical Engineer, winner of 4
Deming Prizes has contributed significantly
• Introduced loss function concept which combines cost,
target, and, variation into one metric with specifications
being of secondary importance.
• Developed the concept of Robustness, which
means noise factors are taken into account to
ensure that the system functions correctly.
• Noise factors are uncontrollable variable that can
cause significant variability in the process or the
product
Loss Function
• Quality – ‘Loss imparted to the society from the time
a product is shipped’…
• Societal losses (Failure to meet customer requirement,
ideal performance, harmful side effects … some
practitioners include losses due to production such as
raw material, energy, and, labor consumed on
unusable products or toxic by-products)
• Example: Production of Large Vinyl Covers to protect
materials from elements
• Meeting target vs. Meeting Specification
Nominal-the-Best
• Although Taguchi developed more than 68 loss
functions, many situations are approximated by
the quadratic function which is called the nominal-
the-best type
• Given by equation, L=k(y- ʈ)2
Where L= cost incurred as quality deviates from target
y = Performance Characteristic
ʈ = Target
k = Quality Loss Coefficient
An Example: