Preview

Taguchi Loss Function

Powerful Essays
Open Document
Open Document
4285 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Taguchi Loss Function
Taguchi Loss Function: Aims to capture the loss to the customer, company and society that can be measured in cost
Taguchi loss function is a diagram of the loss for the company that actual results differ from a target value. Taguchi loss function is intended to capture not only the loss to the customer, but to society and society at large which can be measured by cost. The loss function is not to grasp what cannot be quantified. For that reason the loss of function includes increased pollution as a cost to society. In general, the loss function is shown as a parabola at the point of minimum loss directly above the target value. As she is drawn as a parabola symmetrical in most instances it is not necessarily as the loss function in a real case would be that the actual loss and could be discontinuous and asymmetric. An extremely important concept is the function that displays the weakness of the use of specifications that deal with any outcome between the values that are not rejected as equal. More often while the customer can accept an outcome in the specification they become less satisfied and more likely to find another supplier, as results leave their desired target. This concept has even more value when looking at the loss if it can be measured. While it would be nice to be able to measure all the costs it is often not possible and is worth including known but immeasurable losses in decision-making. And while paying attention to the value of the loss to society is it is also logical to calculate the loss function with respect to all customer and supplier. Here is a detailed analysis and examination costs Taguchi, philosophy and the Taguchi loss function.

1. Introduction
The word quality cannot have a specific meaning when applied to the manufacturing industry. This is basically because the word quality changes within the context it is being used. For a long time, manufacturing industries in European and American countries have worked from the basis of



References: 1. International Journal of Information and Management Sciences, Volume 19, Number 4. 2. Taguchi Methods, Computer Aided Engineering Assignment, Department of Computer Engineering, Curtin University of Technology. 3. Taguchi methods, From Wikipedia, the free encyclopedia 4. Economic design of control charts using the Taguchi loss function, Suraj M. Alexander, Matthew A. Dillman, John S. Usher and Biju Damodaran. 5. Queuing Theory and the Taguchi Loss Function: The Cost of Customer, Ross Fink and John Gillett. 6. sueG., El Sayed, M. & Hsaing, C, Quality engineering and production systems. 7. Optimization of engineering tolerance dsign using revised loss functions, Jeh-NanPanaandJianbiaoPanb. 8. Strengths and Limitations of Taguchi’s Contributions to Quality, Manufacturing and Process Engineering, Saeed Maghsoodloo, Department of Industrial and Systems Engineering, Auburn University

You May Also Find These Documents Helpful

  • Satisfactory Essays

    For the year ended December 31, 2007, management of M determined that a loss for this matter was probable and represented that the estimate of loss was in the range of $15 million to $20 million, with $17 million being the most likely amount of loss within the range.…

    • 337 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    chillaxing

    • 326 Words
    • 3 Pages

    b. Jerry likes the Taguchi Quality Loss function, but he believes that a linear function would better represent the cost of quality. Specifically, Jerry prefers a loss function of the form:…

    • 326 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Client Understanding Paper

    • 1127 Words
    • 5 Pages

    A loss is recorded when the market price is lower than the original cost of the inventory. This loss is also recorded when inventory shows damage, becomes obsolete, or other reasons that would cause the inventory to have a lesser value than the original cost. This adjustment shows the use that is still in the inventory. When the organization recognizes this loss, the organization counts the loss against revenues in the current period of the discovering of the loss.…

    • 1127 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Bridgeton Paper

    • 1658 Words
    • 7 Pages

    4. Are the product costs reported by the cost system appropriate for use in the strategic analysis?…

    • 1658 Words
    • 7 Pages
    Satisfactory Essays
  • Better Essays

    It301 Unit 5

    • 1300 Words
    • 6 Pages

    In the world of quality, there are three great contributors that helped revolutionize and evolve the quality movement. These three gentlemen were W. Edwards Deming, Joseph Juran, and Philip Bayard Crosby. All three of them concentrated on quality in the manufacturing and industrial businesses, yet each of their philosophies are dissimilar. Their contributions to the quality movement can also be applied to other business sectors, such as the information technology field. In order to discuss quality, we will need to explore each of their philosophies and how they relate to one another and additionally, how they contrast with one another. While there are indeed three great contributors, this paper will focus primarily on Philip B. Crosby 's philosophies, and thus, be biased towards him.…

    • 1300 Words
    • 6 Pages
    Better Essays
  • Good Essays

    CI’s cost system was developed to measure performance and profit potential, each materials and labor input is given and production…

    • 915 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Luzius, M., Dr. (2003). Unjit 3 calculating cost variables. American Intercontinental University Power Point Presentation…

    • 449 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Superior Manufacturing

    • 1615 Words
    • 7 Pages

    If product 103 is terminated, there will be a greater loss since Superior has to continue to pay fixed costs. Fixed costs include Rent, Property Tax, Property Insurance, Indirect Labor, Light & Heat, Building Service, Selling Expense, SGA, Depreciation, Interest and Other Income. Loss of 16,039,000yen (see Table 1) without Product 103 is more than the existing loss of 2,209,000yen with Product 103. Hence, Superior Manufacturing should continue to manufacture Product 103 to generate income in order to narrow its losses.…

    • 1615 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    4. Are the product costs reported by the cost system appropriate for use in the strategic analysis?…

    • 496 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Dr.-Eng., Professor, Graduate School of Engineering., Hokkaido University, Nishi 8 Kita 13 Kita-ku, Sapporo 060-8628, Japan.…

    • 6818 Words
    • 28 Pages
    Powerful Essays
  • Good Essays

    * Why could there be hidden profit and hidden loss customers with the previous cost system? What makes a customer a “hidden loss” customer?…

    • 882 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Mkt 421 Week 1 Dq1

    • 319 Words
    • 2 Pages

    Assume you are the newly hired marketing manager of a company. As you spend time with other peer marketing managers, you realize that the company does not place an emphasis on planning within the marketing organization. Why is planning important in marketing? What are the essential components of a marketing plan? How would you convince your supervisor that the marketing department should produce formal marketing plans?…

    • 319 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Lehigh Steel Case Study

    • 3758 Words
    • 16 Pages

    Lehigh Steel has a huge range of products but 3 of these products comprise 70% of Lehigh’s total sales, these three products are: Alloy, Die Steel and High Speed. In order to analyses each of these products, we will need to do some costs analysis to find out whether these products are profitable or whether these products are the causes for the loss in Lehigh Steel. To do this, we will focus mainly on ABC and TOC analysis to analyse the cost and therefore different profits due to the different methods of cost allocation, for each product using the two different methods, then compare the results arising from the two analyses, and finally draw a conclusion.…

    • 3758 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Benihana Simulation Analysis

    • 2590 Words
    • 11 Pages

    Hassin, R. (2002). To Queue or not to Queue: Equilibrium Behavior in Queueing Systems. Tel Aviv.…

    • 2590 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    We are a multispecialty surgery center that does four hundred cases a month. The patients expect a certain level of customer service. The lifetime value of the customer, which is the present value stream of future profits expected over a customers lifetime of purchases (Contemporary Selling p.62). This means that…

    • 1223 Words
    • 5 Pages
    Good Essays

Related Topics