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Using the Taguchi Loss Function to Reduce Common-Cause Variation

Summary: [This abstract is based on the author's abstract.] A framework is provided for linking Japanese methods for quality improvement to those used in the United States. Specifically, the use of implied tolerances is proposed. These are derived from loss functions, which are driven by target costing. The implied tolerances then are linked, through preestablished capability indices, to conventional statistical process control charts. The results are goal control limits that form the basis for directed continuous improvement efforts. Conventional capability studies are used to measure where the company stands in terms of reaching price goals. Equations are provided, and an example illustrates the method.

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  • Topics: Process Capability, Statistical Process Control (SPC), Lean
  • Keywords: Process capability (Cp),Statistical process control (SPC),Taguchi method,Continuous improvement (CI),Just in Time (JIT),Kanban,Target,Tolerances
  • Author: Sauers, D. G.
  • Journal: Quality Engineering