TAGUCHI QUALITY LOSS

FUNCTIONS
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P S ASWIN
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 TAGUCHI QUALITY LOSS
FUNCTIONS
Taguchi Loss Function holds significant importance as a key concept pioneered
by Dr. Genichi Taguchi. Dr. Taguchi, a renowned Japanese engineer and
statistician, was a firm believer in the idea that reducing variation in product
quality is essential for achieving consistent, high-quality performance.

Dr. Taguchi's primary objective was to shift the focus from merely
meeting specifications to actively minimizing variation. This approach
encourages manufacturers to strive for continuous improvement and deliver
consistently high-quality products that meet customer expectations. By
emphasizing the minimization of variation, the Taguchi Loss Function helps drive
the development of robust designs and improved manufacturing processes,
ultimately leading to better customer satisfaction and reduced costs for
manufacturers.
 INTRODUCTION

The Taguchi Loss Function (or Quality Loss Function) is a mathematical

representation that quantifies the relationship between product quality and the
financial loss (loss to society) associated with deviations from a target value.
The Taguchi Loss Function is an equation used to quantify the financial loss
incurred due to deviations in product quality from the target value. It is based
on the principle that any deviation from the ideal or target value increases
costs associated with poor quality, customer dissatisfaction, or product failures.
 WHAT IS TAGUCHI'S LOSS FUNCTION?

Taguchi's loss function is a mathematical formula that quantifies the loss or

dissatisfaction experienced by customers or society as a result of variation or
deviation from a target value. The loss function is based on the assumption that
any deviation from the target, even within the specification limits, causes some
loss of quality. The loss function can be expressed as L(y) = k(y-T)^2, where
L(y) is the loss, y is the actual value, T is the target value, and k is a constant
that depends on the unit of measurement and the customer's expectations.
 WHAT ARE THE BENEFITS OF USING
TAGUCHI'S LOSS FUNCTION?

Taguchi's loss function can be a powerful tool for measuring and reducing
quality costs in a way that is customer-oriented. It can help you align quality
goals with customer satisfaction and social welfare, as well as identify and
prioritize the critical factors that affect quality. Additionally, using this loss
function can optimize process performance and efficiency, reduce waste,
rework, defects, and complaints, and ultimately enhance your competitive
advantage and reputation.
COMPARISON OF TAGUCHI'S LOSS FUNCTION
WITH OTHER QUALITY COST MODELS

Taguchi's loss function is not the only way to measure quality costs. There are
other models that use different approaches and assumptions. For example, the
traditional quality cost model divides quality costs into four categories:
prevention, appraisal, internal failure, and external failure. This model focuses
on the costs incurred within the organization and assumes that there is no loss
of quality within the specification limits. Another model is the Deming cost
model, which is similar to Taguchi's loss function but uses a different formula
and constant. This model emphasizes the importance of continuous
improvement and reducing variation to zero.
 EQUATION
L(x) = K * (x - T)^2
• Where:
• L(x) represents the financial loss associated with a specific deviation from
the target value.
• K is the loss coefficient, a constant that determines the rate at which
financial loss increases with deviations from the target value.
• x is the actual value of the quality characteristic being evaluated.
• T is the target value, the ideal or optimal value of the quality characteristic.
The equation is quadratic in nature, indicating that
the financial loss increases exponentially as the deviation from the target value
grows. This means that even small deviations from the target can result in
significant financial losses, emphasizing the importance of maintaining high-
quality products that meet customer expectations.
 PURPOSE OF DIAGRAM
The purpose of the Taguchi Loss Function Diagram is to visually illustrate how variations in

product or process characteristics impact the quality of a product or service. It helps in

understanding the financial implications of deviations from the target or desired values for these

characteristics. The diagram is typically used to optimize processes and products to minimize the

loss caused by variations.

• Here's how the Taguchi Loss Function Diagram works:

1. X-axis (Horizontal Axis): This axis represents the range of possible values for a specific

product or process characteristic. It could be dimensions, temperatures, pressures, etc.

2. Y-axis (Vertical Axis): This axis represents the associated loss or cost caused by deviations

from the target value of the characteristic. The loss is usually measured in monetary units or

other relevant units.

3. Loss Function Curve: The curve on the diagram is a graphical representation
of the Taguchi Loss Function. This function quantifies how the loss increases as
the characteristic moves away from its target value. It typically follows a
quadratic or exponential shape, indicating that small deviations from the target
value cause relatively small losses, but larger deviations result in rapidly
increasing losses.

By analyzing this curve, quality engineers and process designers can identify
the optimal range or target value for a given characteristic that minimizes the
associated loss. This approach is rooted in the philosophy of robust design and
Six Sigma principles, where the goal is to produce products or processes that are
less sensitive to variations, thereby reducing defects and improving overall
quality.
THE TAGUCHI METHOD IS BASED
ON TWO CONCEPTS

• Robust quality: Consistency of quality.

• Quality loss function.

 ROBUST QUALITY

The concept of robust quality has a product-oriented approach, that is to say that
units that can be produced in a uniform (consistent) manner should be designed,
despite processing in an adverse environment. The priority in the Taguchi method is
not the adverse manufacturing conditions, which can be considered as causes, but
the design of the product, so that an adverse environment has no effect on the
quality of the units.

The premise of this approach is to avoid that variations in the quality of the
manufacturing environment, which can be multiple, affect the quality of the
product.
 QUALITY LOSS FUNCTION (QLF)

The function of loss of quality, widely known as QLF by its acronym in

English Quality Loss Function, establishes the behavior of the costs associated
with the deviations of quality with respect to the goal. So that the product, in
terms of quality, ceases to be simply cataloged as compliant or non-
conforming, to be measured by a function that establishes the cost of moving
away from the exact specifications of the client.
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