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Economic considerations on parameter design
Author(s) -
Kim Young Jin,
Cho Byung Rae
Publication year - 2000
Publication title -
quality and reliability engineering international
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.913
H-Index - 62
eISSN - 1099-1638
pISSN - 0748-8017
DOI - 10.1002/1099-1638(200011/12)16:6<501::aid-qre358>3.0.co;2-y
Subject(s) - taguchi methods , variance (accounting) , quality (philosophy) , product (mathematics) , process (computing) , point (geometry) , minimum variance unbiased estimator , mathematical optimization , control (management) , computer science , reliability engineering , econometrics , industrial engineering , operations research , statistics , engineering , mathematics , economics , mean squared error , philosophy , geometry , accounting , epistemology , artificial intelligence , operating system
A simultaneous consideration of process mean and variance in product design stages has been considered one of the most significant of Taguchi's contributions. Among his quality improvement methods, parameter design has drawn a great deal of particular attention from researchers. The ultimate objective of Taguchi's parameter design is to find control factor settings to achieve an on‐target process mean with a minimum variance. There is no doubt regarding the virtue of the minimum variance. However, considering a variety of economic aspects related to product specifications as well as a quality loss, the on‐target process mean may not necessarily be economical. This paper investigates the parameter design problem from an economic point of view and proposes an alternative procedure to achieve the most economical process mean as well as the minimum variance by taking product specifications and an asymmetric quality loss into consideration. It is shown through an illustrative example that a significant cost saving can be accrued from the proposed procedure. Copyright © 2000 John Wiley & Sons, Ltd.