Taguchi Loss Function for Cost Minimization

Taguchi Loss Function is a method to express quality variation from the desired mean in terms of economic loss. By utilizing this function, one can determine average cost per unit and set parameters to minimize costs for both the company and customers. The function is represented by Lx = k((x-T)^2), where k controls the shape of the parabolic equation. This approach helps in finding k with known costs at specific measures, allowing optimization for one-sided situations. Explore more about Taguchi Loss Function and how it can benefit your business.

• Taguchi Loss Function
• Cost Optimization
• Quality Variation
• Economic Loss
• Parameter Setting

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Uploaded on Mar 01, 2025 | 0 Views

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Presentation Transcript

1. Taguchi Loss Function pp. 328-333 1

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

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 Loss per unit at distance x from the target = a constant k times distance from x to target squared. 3

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

5. Can determine average cost per unit with a process with a given mean and standard deviation expected loss for process with mean mu = k times (sd+square of distance from mean to target) EL = k(SD+D^2) 5

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 6

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

8. Truncated curves, see accompanying excel sheet 8