Taguchi Loss Function
Taguchi Loss Function
Taguchi Loss Function
Example:
A great example of the goal post vie of quality and
specification limits is to insert a medical device into the chest
of a patient that is 25 mm in diameter (the nominal value). A
deviation of 5 mm above or below the nominal value is
acceptable to the surgeon performing the operation. Thus if a
medical device’s diameter measures between 20 mm and 30
mm , it is considered as conforming to specifications,
Continuous Improvement view of Quality
According to this view of quality, Taguchi states that
any variation away from the nominal (target) performance
will begin to incur customer dissatisfaction. As
the variation increases, the customer will gradually
(exponentially) become dissatisfied. This dissatisfaction is
deemed as loss of quality and shown in a parabolic curve
known as the loss curve, which depicts the loss of
deviating from the nominal within specification.
William Ducan defines loss function as, ‘’ A parabolic
representation of the loss function that estimates the
quality loss that results when quality characteristics
deviate from the target values. The cost of this deviation
increases quadratically as the characteristic moves further
from the target value
Continuous Improvement view of Quality
The loss function demonstrates that
the target value and the bottom of
the curve intersect, implying that as
parts are produced at the nominal
value, no loss occurs. Also the curve
flattens as it approaches and
departs from the target value. This
shows that as products approach
the nominal value, the loss incurred
is less than when it departs from
the nominal value. Any departure
from the nominal value incurs a loss.
This curve clearly shows how even a little variation from the nominal
results in a loss, hence, the tendency should be to try and keep product
and process as close to the nominal value as possible. This is what is so
beneficial about the Taguchi Loss Function. It al the focus on the need to
continually improve.ways keeps
Taguchi Loss function
The loss generated by one unit is calculated using the
formula
L(y)=k(y−m)2)
k=c/d2
where:
L(y) - the loss in currency
k - a proportionality constant dependent upon
the organization’s failure recovery structure y -
actual value of quality characteristic,
m - target value of quality characteristic,
c - loss associated with the specification limit,
d - deviation of the specification from the target
value.
Taguchi Loss function
Taguchi Loss Function
Both views of Quality
Types of Quality Loss function
There are many types of quality loss functions. However,
in all types, the loss is determined by evaluating
variation from a specific target. Taguchi’s philosophy
includes three general ways to evaluate the relationship
between quality and variability.
Nominal is best approach: In this
approach, the closer to the target
value, the better. It does not matter
whether the deviation is above or
below the target value. Under this
approach the deviation is quadratic.
The following exhibit portrays the
nominal is best approach. Some
examples include diameter of a vessel,
voltage, current etc.
Types of Quality Loss function
The Smaller is Better Approach:
The smaller is better approach is when
a company desires smaller values. As the
value gets larger, the loss incurred
grows. The following exhibit portrays
the smaller is better approach. Some
quality factors are such that their values
need to be set as small as possible,
preferably zero. Examples include
shrinkage, wear, pollution etc.