Taguchi Quality Loss Function

• The quality loss function as defined by Taguchi

is the loss imparted to the society by the
product from the time the product is designed
to the time it is shipped to the customer.
• In fact, he defined quality as the conformity
around a target value with a lower standard
deviation in the outputs.
• Taguchi suggests that every process have a
target value and that as the product moves
away from target value, there's a loss incurred
by society.
• This loss may involve delay, waste, scrap, or
rework.
• The Taguchi technique in quality engineering
greatly emphasizes lowering variation as the
major way to improve quality.
• The concept is to design processes and
products that are not influenced by external
conditions when it comes to performance.
• The Taguchi loss function is graphical
depiction of loss developed by the Japanese
business statistician Genichi Taguchi to
describe a phenomenon affecting the value of
products produced by a company.
• This means that if the product dimension goes
out of the tolerance limit the quality of the
product drops suddenly.
• Essence of loss function concept is that
whenever a product deviates from its target
performance, it generates a loss to the society
• Taguchi uses a quadratic equation to determine this curve
• Quality loss function(QLF) is given by :
• L(x) = k(x-N)2
• Where L(x) = Loss function
• k= Constant of proportionality also known as quality loss
co-efficient
• x= Quality characteristic of selected product
• N= Nominal (or target) value of the chosen product and
• (x-N) = Tolerance
• Statistical methods
• To improve quality of goods
• Taguchi’s contributions :
• 1. Taguchi loss function
• 2. Philosophy of off-line quality control
• 3. Innovations in Design of Experiments-DOE
• Taguchi loss function
• Loss imparted by the product to society from
the time the product is shipped
• Loss includes costs to operate, failure to
function, maintenance and repair costs,
customer dissatisfaction, injuries caused by
poor design
• Defective products identified before shipment
is not included
Traditional vs Taguchi
Taguchi’s Quadratic Quality Loss Function

• Quality loss occurs when a product’s

specifications deviates from target or nominal
value
• No matter, how small the deviation, there is
some loss in quality
• If the deviation grows, then the loss increases