Quality Loss Function – A Common Methodology for Three Cases

Document Type: Research Paper

Abstract

The quality loss function developed by Genichi Taguchi considers three cases, nominal-thebest, smaller-the-better, and larger-the-better. The methodology used to deal with the larger-thebetter case is slightly different than the other two cases. This research employs a term called target-mean ratio to propose a common formula for all three cases to bring about similarity among them. The target-mean ratio can take different values representing all three cases to bring consistency and simplicity in the model. In addition, it eliminates the assumption of target performance at an infinite level and brings the model closer to reality. Characteristics such as efficiency, coefficient of performance, and percent non-defective are presently not larger-thebetter characteristics due to the assumption of target performance at infinity and the subsequent necessary derivation of the formulae. These characteristics can also be brought under the category of the larger-the-better characteristics. An example of the efficiency of prime movers is discussed to illustrate that the efficiency can also be considered as a larger-the-better characteristic. A second example is presented to suggest the subtle differences between both methodologies.

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