Taguchi Methods QLF PDF

THE QUALITY LOSS FUNCTION
Quality ultimate system performance measure

Variability relates to quality
Variability increases quality lost
Can this loss be measured?
The concept % defective has been widely used as a measure of quality
level
When defective product units are not shipped it should not be considered
a quality problem but a cost problem
How to evaluate the quality level of products shipped to customers is the
problem of concern.
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ENGN8101 Modelling and Optimization
Loss Function and Quality Level
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In the past, % defective, process capability

index and warranty cost have been used as
measures of quality level for shipped
products.
One major weakness of the process capability
index is that there is no apparent immediate
basis for specifying the optimal value of Cp.
% defective or warranty costs are
understandable because they are monetary
related measures
How far from target can a system be before it should be

rejected and changed?
Different to customer tolerance o point at which customers
have to take economic action because of off-target
performance
Often o incurs greater costs than manufacturing limit
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Quality Loss Concept
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Deviation from
target results in loss.
Lower than target
Greater than target
Both lose
How can we use Quality Loss

Concept in real life?
Lets assume that you are an Operations Manager at a
company that produces custom made doors and door
frames. During the winter, due to cold weather, doors tend
to shrink which lets in cold air through the cracks between
the door and the door frame. During the summer doors
tend to expand beyond its normal size due to hot weather,
which makes to door hard to open because it rubs against
the door frame. Your job is to produce a door, where
dimensions (length and width of the door) are set to a
specific target level. In other words in the Winter the door
cannot let any cold air in the house and it should open
properly in the Summer.
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How can we use Quality Loss

concept in real life?
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Traditional Quality Metric
All products within specifications equality good.

All products outside specifications equally bad.
Equally
unacceptable
All products equally good
USL
LSL
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Loss Function (Cont.)
Unfortunately, this definition has led to a mindset which becomes a barrier to

improvement in our industry.
We have come to view all products which fall within specification limits as being of
equal quality. Consider the following:
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Loss Function (Cont.)
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TV Example
Consider a comparison between the quality of color
television sets produced by two factories belonging to the
same manufacturing company. One factory (A) is located in
Japan, and the other factory (B) in America. Suppose the
comparison was based on color concentration, which
relates to the color balance of the television sets. Although
both factories used the same design, the television sets
produced in the American factory had lower quality, and
consumers consequently preferred products made in
Japan.
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TV Example (Cont.)
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The figure given in the next slide shows the

differences in quality characteristic (i.e., color
concentration) distributions. The figure shows that
the quality distribution of the Japanese-made
television sets (shown by the solid curve) is
approximately a normal distribution with a target
value at the center; its standard deviation is about
1/6 of the tolerance, which in this case equals 10.
In quality control, the index of tolerance divided by 6
standard deviations is called the process capability
index, denoted by Cp.
Cp=tolerance/(6*standard deviation)
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TV Example (Cont.)
Distribution of color concentration

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TV Example (Cont.)
The process capability of the Japanese-made television sets

is 1.
On the other hand, the quality distribution of the Americanmade television sets (shown in the figure by a dotted curve)
has less out-of-specification products than the Japanese
made products and is quite similar to the uniform
distribution for those products that are within the tolerance
limits. Since the standard deviation of the uniform
distribution is given by 1/ 12 of the tolerance, the process
capability index for these sets is given by
Cp=tolerance/(6*(tolerance/ 12))=0.577
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QUALITY LOSS FUNCTION

Quadratic quality loss function relates quality loss in dollars
L(y) to the deviation away from a targeted value (m) of a
measured response value (y)
such that
i.e. |y-m|
L(y) = k(y-m)2
If m is achieved.
. loss is zero
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Derivation of the Loss Function

Assume the loss due to a defective part (because
of discarding, repairing, or downgrading) is A.
then denote the loss function by L(y) and expand
it in a Taylor series about the target value m:
L(y)= L(m+y-m)
L (m)
L (m)
or L(y)=L(m)+ 1! (y-m)+ 2! (y-m)2 +
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Derivation of the Loss Function (Cont.)

Because L(y)=0 when y=m (by definition, quality loss is zero
when y=m), and the minimum value of the function is
attained at this point, its first derivative with respect to m is
zero. The first two terms of the equation then, are equal to
zero. When we neglect terms with powers higher than 2, the
equation reduces to
L (m)
L(y)=
(y - m)2
2!
or L(y)= k (y - m)2
where k is a proportionality constant.
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Relationship between quality loss and deviation from the target value (m)
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When the deviation products functional
characteristic is an amount o from the
target value m, the loss equals Ao. Then,
Ao=ko2
k=
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A0
2
0
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- unifying concept of quality and cost

- relates engineering and economic terms in one model
- allows for easy cost optimization strategies
k = quality loss coefficient
m+o = functional limits
beyond which 50% of system product needs customer
maintenance
i.e. average customer tolerance
L(y) = Ao at y = mo
Ao = cost to replace/repair product
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CASE STUDY T1
A spring is used in the operation of a camera shutter. The manufacturing process
suffers from a degree of variability, in terms of the spring constant (measured in
oz/in), which significantly effects the accuracy of the shutter times. The functional
limits for this spring constant are m0.3oz/in (m=0.5oz/in), and the average cost for
repairing or replacing a camera with a defective spring is $20.
What is the loss function? Hence, what is the loss associated with producing a spring
of constant 0.25oz/in versus the loss associated with one at 0.435oz/in.
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Uses of the Loss Function

The loss function approach can be used in evaluating the
effect of quality improvement. For example, assume that
Factory A has improved the process so that a new
standard deviation from target of 10/8 (the previous one
is 10/6) is attained. What would be the losses caused by
deviations from the target value?
L=
k ( y m) = k
2
L=0.08(10/8)2=$0.125
The loss per unit of production would decrease from
$0.222 (current process) to $0.125, resulting in $0.097
savings per unit.
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Loss Function/Process Capability Index

Let us see how the loss function is related to the process capability index Cp. For the
current process and the improved process discussed above,
L1=k 12
L2=k 22
(loss with current process)

(loss with improved process)
Divide the first equation by the second to obtain
12
L1
= 2
L2
2
But
C p1 =
Then
tolerance
and
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Cp2 =
tolerance
6 2
2
L1 C p2
= 2
L2 C P1
This equation implies that the losses caused by deviation are reciprocally proportional to
the squares of the Cp indices.
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Economic Consequences of Tightening

Tolerances as a Means to Improve Quality
As illustrated in the following example, the loss function
approach can be used to determine the economic impact
of tightening the tolerance to improve product quality. In
order to reduce the difference in quality and process
capability indices between television sets produced in
Factories A and B, the management of Factory B tightened
the tolerance from m5 to m5*(2/3). The cost of
repairing an out-of-specification unit is still $2. What is the
economic impact of tightening the tolerance?
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Economic Consequences of Tightening Tolerances

as a Means to Improve Quality (Cont.)
With the original tolerance, the expected loss is

2
L=k =$0.667. The expected loss after tightening
the tolerance is
2
L=k = 0.08[(2/3)*(10/ 12 )]2= $0.296/unit
If improvement of the process was obtained by
repairing the failed units (units outside the new
tolerance m5*(2/3)) at a cost of $2 per unit, then
the average cost of repair is as follows:
Average cost of repair per unit = percent of
production that needs repair to meet the tightened
tolerance * repair cost per unit = 0.333*2 = $0.667
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Economic Consequences of Tightening Tolerances

as a Means to Improve Quality (Cont.)
A summary of the results of this example is shown in the table given
below. In this case, tightening tolerance is an uneconomical alternative
because the expected total loss of tightening tolerance and repair
(0.667+0.296=$0.963) is greater than the expected loss using the
original tolerance ($0.667).
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The Loss Function and

Justification of Improvements
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The loss function can also be used to justify

improvements of the process, as illustrated in the
following example.
Assume that Factory A wishes to improve the
quality of its television sets by reducing deviations
from the target value so that the new standard
deviation will be 10/8. This improvement can be
technologically achieved at an additional cost of
$0.05 per unit of production. Should the factory
improve its process? (Assume that no inspection is
performed.)
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The Loss Function and Justification of

Improvements (Cont.)
Total loss per unit of the current process:

2
L= k
= 0.08(10/6)2 = $0.222
Total loss per unit after improving the process:
L=0.08(10/8)2 = $0.125
Additional cost of improvement = $0.05/unit
Additional cost plus loss per unit = 0.05+0.125=$0.175
The net gain resulting from improvement in the process
capability is 0.222-0.175= $0.047 per unit of production. If
the production rate of this factory is 100,000 units per
month, then the expected savings will be $4700 per month,
or $56,400 annually.
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The Loss Function and Inspection

The loss function approach can be used effectively to
determine whether 100-percent inspection can be
justified or not. It should be noted that the objective
of inspection is to screen or repair defective products
that cannot meet the given specifications. Therefore,
inspection cannot be used to improve the quality of
items within the specifications. The improvement of
the process can only be accomplished through
improved manufacturing techniques or product
design, not through screening or 100-percent
inspection.
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(Cont.)
Consider the case where the diameter of a stainlesssteel bar is m5m. The cost of repairing a defective
bar is $6, and the cost of inspection is $0.03 per unit.
Would a 100-percent inspection of items be justified?
The estimated standard deviation of the process is
10/6.
The expected loss without inspection is
2
L=k
where k = A/2 = $6.00/52 = $0.24
therefore L = 0.24(10/6)2 = $0.667/unit
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(Cont.)
Assuming that the characteristic of the product follows a

normal distribution, the proportion of the products falling
outside the specification m5 is 0.27 percent. The variance
after screening defective products by using 100-percent
inspection ( out ) is obtained using the procedure shown
2
below.
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After the total inspection, the out-of-specification products

are removed. The probability density function of those items
that have passed the screening (acceptable items) is given
by dividing the probability density function of the normal
distribution by Q, the proportion of acceptable items.
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(Cont.)
Let f(y) be the density function of the normal
distribution, which is given by
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The Loss Function and Inspection (Cont.)
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(Cont.)
One might conclude that in this case 100-percent inspection

is useless in improving quality, because the fraction defective
is only 0.27 percent. It is different, of course, when the
purpose of 100-percent inspection is to find serious
defectives.
In the case of a normal distribution with a standard deviation
that is of the tolerance, the loss without inspection, L, is
L = 0.24*(10/4)2 = $1.50/unit
The proportion of the product falling outside the specification
is 4.55 percent, and the variance of the outgoing items is
(0.88)2 times that of the original value. The total loss in the
case of 100-percent inspection when equals 10/4 becomes
L = 0.03+6.00*0.0455+0.24*(0.88)2*(10/4)2
= $1.465/unit
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(Cont.)
This result is an improvement of $0.035 per item. If there

are 200,000 items produced each month, the amount of
improvement is $7,000 each month.
Assuming that the standard deviation is the tolerance and
the production output still follows a normal distribution, the
portion of the product falling outside the specification is 31.7
percent. Even if all the products are inspected and the
defective ones screened out, the standard deviation of the
outgoing quality is reduced to only 53.9 percent of the
original value (=tolerance/2). Therefore, the loss caused
by variation is
L=0.24[0.539*(10/2)]2= $1.743
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(Cont.)
Not only is this worse than the loss of
$0.667 for =10/6 and no inspection, but
it is also worse than the loss of $1.50 for
=10/4 and no inspection, with 4.55
percent defective products. Thus, the
solution to the quality problem is, in this
case, through improvement of the process
and not through 100-percent inspection.
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The Loss Function and Inspection (Cont.)
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(Cont.)
The table shows a summary of the expected losses caused
by variation for different probability distributions. These
expected losses do not include the cost of inspection or
loss caused by defective products found by inspection.
Cases 1 through 6 demonstrate how screening reduces
total losses for the given parameters. A detailed analysis of
Case 2 follows, in order to illustrate how the results of the
table are obtained.
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(Cont.)
Since L=k
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(Cont.)
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Determinations of Tolerances
Loss function can also be used to determine tolerances of

the quality characteristics. The determination of tolerance
is illustrated in the following example.
Example: Consider the production of high-voltage transformers. During the life of
this kind of transformer, output voltage might change because of the deterioration
of transistors in the power circuit. Assume that a transformer is not suitable for its
intended function when its output voltage exceeds the tolerance limits of 11525V.
Exceeding the limits results in a loss (denoted by A) of $300. Before shipping to a
customer, the manufacturer can adjust the voltage in the plant by changing a
resistor at a cost of $1. What should the manufacturers specifications be?
Solution: The loss caused by product variation from the target value, L(y), is
L(y)=k(y-m)2
where m is the target value (115V in this case) and k is the proportionality
constant.
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k=
300
A
=
= 0.48
2
2
0 (25)
The loss function
L( y ) = 0.48( y 115) 2
It is assumed that the allowable varying range of the output voltage for the customer is
11525V. The allowable varying range in the plant will be different, because it is easy to
adjust the voltage to the target value by changing a resistor in the circuit. The loss or cost of
adjust to the manufacturer is $1. Substitution of this value in Equation above yields
1.0 = 0.48( y 115) 2 y = 115 1/ 0.48 115 1.4V

As shown above:
300 = k ( ycus. m) 2 for ycus. m 0 300=A0 = k ( 0 ) 2

1 = k ( ymanu . m) 2
for ymanu . m 1=A = k ( ) 2
A0
A
k= 2 = 2 =
0
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A
0
A0
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and the manufacturers tolerance is
= 0 /
A0 0 (functional orcustomer limit)

=
A
(safety factor)
=manufacturers tolerance limit

A=manufacturers loss when the product does not conform to the
specification limits
A0=loss to the customer caused by the failure of the product
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Main function of quality loss function:

=
define manufacturing tolerances

or more generally
define system variability
QUALITY LOSS FUNCTION 4 types

In the following illustrates the evaluation of the quality level of products
by using the loss function approach for four types of tolerances. The
three types are listed below:
1
2
3
4
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target-is-best
smaller-is-best
larger-is-best
asymmetric target-is-best
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Target-is-best
e.g. previous example!
-quality characteristics is usually a nominal output, for example
--most parts in mechanical fittings have nominal dimensions

--Ratios of chemicals or mixtures are nominally the best type.
--Thickness should be uniform in deposition /growth /plating
/etching..
Average quality loss

This type of tolerance is required for many products, parts,
elements, and components when a nominal size (or characteristic) is
preferred.
calculated in terms of MSD (mean square deviation)

for n observations:
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1 n
MSD = ( yn m) 2
n i =1
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From this the average loss function for multiple lots:

1
n
2
(
y
y
)
S2 = variance = n 1 i =1 i
L ( y ) = k S 2 + ( y m) 2
CASE STUDY T2
Continuing from above, it was thought that if a new machine was purchased that the
losses would reduce. To test this, 8 springs were tested from each machine, as detailed
below. Which machine is best, and why?
New machine:
Old machine:
0.37, 0.41, 0.37, 0.43, 0.39, 0.35, 0.40, 0.36

0.55, 0.67, 0.70, 0.54, 0.41, 0.32, 0.46, 0.66
Data table
Winder
New
Old
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S2
0.0007 0.385
0.0184 0.539
(-m)2
L(y)
0.0132 3.08
0.0015 4.41
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New machine:
Old machine:
lower variance but off-target

higher variance but on-target
Loss incurred influenced by variability more than target value

To reduce loss further (new machine)
use an adjustment parameter
i.e. reduce variability then adjust average response
A 2-stage optimization!
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Target-is-best
Example: A manufacturer of ball bearings used in gas
turbines requires that tolerances of the diameter and
hardness of each ball be as follows:
Tolerance of diameter
Tolerance of hardness
m1 0.6 m
m2 2.0 (Brinell hardness)
where m1 and m2 are the target values of the diameter and

the hardness, respectively. The production rate is 80,000
balls per day at a cost of 30 per ball. Defective balls
cannot be reworked and are scrapped. The following
deviations from the diameter and the hardness target
values were recorded.
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Target-is-best
Deviations from the target diameter:

0.3 0.0 -0.1 0.0 0.3 0.2 0.1 -0.2 0.6 0.4
-0.2 0.1 0.0 -0.4 0.5 0.4 -0.2 0.0 0.0 0.2
Deviations from the target hardness:

-1.0 -1.6 -0.4 -1.0 0.6 0.4 -1.2 -1.3 -0.2 -0.4
-0.4 0.5 -0.3 0.6 0.6 -0.9 -0.7 -0.9 -0.7 -1.3
Based on the diameter and hardness measurements
recorded above, determine the quality levels of the
production process for the diameter and hardness
attributes of the balls.
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Target-is-best
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Target-is-best
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A process without adjustment

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Example: By examining the diameter data we find that more positive

deviations than negative ones, whereas the hardness data show more
negative deviations than positive ones. Assume that the manufacturer can
shift the means of the data to the target values. What are the quality levels of
the diameter and the hardness after the adjustments?
Solution: The process should first be adjusted so that the value of every
diameter is adjusted by an amount e*= ( y m) , the predicted deviation of the
diameter from the target value. The new deviation (after adjustment) from
the target value (m+ e*) is
Deviation after adjustment = y m ( y m) = y y
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Smaller-is best
here ideal response = zero
L(y) = k(y)2
examples?
Background density on a
text image
Radiation leakage
Corrosion of metals
Signal to noise ratios!
Defective components
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-quality characteristics is
usually an undesired output,
for example
--Defects like pin holes,

particulates in deposition
processes
--Unwanted by-product
or side effect
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Features:
The-Smaller-The-Better type tolerance involves a nonnegative
characteristic, whose ideal value is zero. A typical example of such
a characteristic is impurity. Wear, shrinkage, deterioration, and
noise level are also examples of this type.
Under The-Smaller-The-Better (S-type) tolerance, the
characteristic value is y0, the target value is m=0, and the upper
tolerance limit is .
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CASE STUDY T3
In the copier industry, one measure of the acceptability of a copy is the amount of
background toner particles that adhere to the portion of the copy that is intended to be
white. Minimizing the residual toner in white areas is a smaller-is-best objective. It
has been determined that approximately half of the customers will not tolerate a
background level beyond 1.2 background units. Beyond that, a service call is placed at
a cost of $200 plus the cost of the down time of the copier - $150 per hour. If the
average copier down time is 2.5 hours, what is the associated loss function?
As time progresses, it is apparent that one copier is not enough, so a second one is
introduced. 8 sample background measurements are taken from each machine to
compare and contrast their performances. From the data below what conclusions
can you draw about the cost of this facility?
Machine 1:
Machine 2:
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0.64, 0.56, 0.71, 0.55, 0.59, 0.75, 0.64, 0.76

0.55, 0.67, 0.70, 0.94, 0.71, 0.82, 0.86, 0.96
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Here: o=2 = 1.2, Ao = 200 + 150(2.5) = $575

So k = Ao/(o)2 = 575/1.22 = $399.30
L(y) = 399.30(y2)
Data table =
Machine
S2
S2+2
L(y)
1
2
0.0068
0.0203
0.65
0.77
0.4293
0.6229
171.41
248.70
Note: S2+2 not (-m)2

Clearly machine 1 is best but is probably sub-optimal?
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The-Larger-The-Better (L Type)
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Larger-is-better
here ideal response = max
L(y) = k(1/y2)
--quality characteristics is
usually a desired output, for
example
--Bond strength
--Critical Current
and k = Aoo2
examples?
.
.
etc!
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CASE STUDY T4
The seal strength of a vacuum blower housing in an office copier is an example of a
larger-the-better case. The better it can run under widely varying use environments,
the better it is for minimizing loss. When the blower seal fails to operate, it costs $40
to replace: $20 in part costs and another $20 in installation labour costs. While the
device that uses the vacuum blower sits idle, the cost to the customer is $340/hour. On
average it takes 30 minutes to replace the blower. Seal integrity is measured by testing
the seal adhesion strength. The seal level at which the vacuum loss becomes
objectionable is 20 psi.
What is the loss function and what is the loss incurred for a machine whose seal
strength is measured as 13 psi?
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Ao = 340/2 + 40 = $210
o = 20 psi
so
k = 210 x 202
giving
When y = 13 psi:
L(y) = 84000/y2
L(y) = 84000/132 = $497
BUT/ the actual cost of repair is only $210!

This illustrates that costs continue to increase beyond the
acceptable value due to other consequences on the system
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1 n 1 2
L( y ) = k ( MSD) = k
n i =1 yi
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Example: Consider two types of cables, T1 and T2. The price and strength
for either type are proportional to the cables cross sectional area. The
prices are P1=$1750/mm2 and P2=$2250/mm2, and the strengths are
S1=220kgf/mm2 and S2=265kgf/mm2 for types T1 and T2, respectively. The
lower tolerance limit of the cables breaking strength is 20000kgf, and the
loss caused by falling below the lower tolerance limit is $58 million.
Perform tolerance design and determine the tolerance limits for the better
cable.
Solution: We first calculate the total cost for each cable (price +quality
loss). Let x be the cross-sectional area of the cable, which is the parameter
being sought.
Cable T1. The total cost C is obtained as the sum of the price and the quality
loss.
A0 02
C = P1 x +
( S1 x) 2
= 1750 x +
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58, 000, 000 (20, 000)

(220 x) 2
(3.13)
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The total cost is minimized by taking the derivative of Eq (1) with respect
to x and equating it to zero:
2 A0 02
dC
= P1 2 3 = 0
dx
S1 x
or
1/ 3
2 A0 02
x= 2
S1 P1
= 818mm 2
The price of this cable is

1750818=$1.43 million
Cable type T2 : The corss-sectional area is
1/ 3
2 58, 000, 000 (20, 000) 2

x=
2
2250
(265)
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= 665mm 2
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The price of cable T2 is

2250665=$1.50 million
Cable T1 is selected, since the price of T1 is less than T2. The tolerance of
this cable is obtained using the formulation presented before:
k=
A0
A
=
(1/ ) 2 (1/ 0 ) 2
It turns out
=
A0
58, 000, 000
0 =
20 metric tons force
A
1, 430, 000
=127.4 metric tons force
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Asymmetric target-is-best
i.e. when it is more harmful for the variable to be off-target in
one direction over the other
here 2 loss
functions required:
i.e.
L+(y) = k+(y-m)2, y>m
L-(y) = k-(y-m)2, ym
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CASE STUDY T5
Consider the temperature drift in a refrigerator. The standard target for most
refrigerators is 40F. Consider the consequences of being above and below this
targeted temperature. When the temperature gets above 50F, several things can
happen that annoy the consumer. These include tepid food and drink that is not
pleasant to the taste, and spoilage due to accelerated bacterial growth. Each of these
can cause economic loss, losses due to discarding and replacement of food, and losses
due to illness from ingestion of tainted food. When the temperature gets below 30F,
there may be some damage due to ice crystals, but there should be little food lost.
When too hot the losses incurred include $50 for lost food replacement and $100 for
a service call. When too low, the losses incurred include $10 for lost food replacement
and $100 for a service call.
What are the loss functions in this case?
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85
here, k- < k+
k+ = Ao/O2 = $150/(10F)2 = $1.50/F2
k- = Ao/O2 = $110/(-10F)2 = $1.10/F2
L+(y) = 1.5(y-40)2
10/08/2007
L-(y) = 1.1(y-40)2
86
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87
TAGUCHI S/N RATIOS

Taguchi idea use signal/noise ratios as performance measures
signal = target value
noise = scatter around target value
Performance measure when maximized
variation is minimized
loss is minimized
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88
Advantages of S/N Method
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89
When to Use the S/N Ratio for

Analysis
Whenever an experiment involves repeated
observations at each of the trial conditions, the
S/N ratio has been found to provide a practical
way to measure and control the combined
influence of deviation of the population mean from
the target and the variation around the mean. In
standard ANOVA they are treated separately.
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90
When to Use the S/N Ratio for

Analysis (Cont.)
S/N offers the following two main advantages:
1. It provides a guidance to a selection of the
optimum level based on least variation around
the target and also the average value closest to
the target.
2. It offers objective comparison of two set of
experimental data with respect to variation
around the target and the deviation of the
average from the target value.
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91
Signal to Noise Ratio

The relevance of the S/N ratio equation is
tied to interpreting the signal or numerator of
the ratio as the ability of the process to build
good product, or of the product to perform
correctly. By including the impact of the noise
factors on the process or product as the
denominator, we can then adapt the S/N
ratio as the barometer of the ability of the
system (product or process) to perform well
in relation to the effect of noise.
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92
Signal to Noise Ratio (Cont.)

By successfully applying this concept to
experimentation, we can determine the
control factor settings that can produce
the best performance (high signal) in a
process or product while minimizing the
effect of those influences we can not
control (low noise).
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93

To obtain a better understanding of how this approach
works and what it means, lets discuss a practical
example (car radio) illustrated below:
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95

For improved additivity of the control factor effects, it
is common practice to take log transformation of
2/2 express the S/N ratio in decibels.
2
Z = 10 log10 2
The range of values of 2/2 is (0,), while the range

of values of Z is (-, ). Thus, in the log domain, we
have better additivity of the effects of two or more
control factors. Since log is a monotone function
maximizing 2/2 is equivalent to maximizing Z.
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96
very important reason
Taking logarithm improves additivity.

Why?
Most functions in nature follow the power-laws

Y = A exp (-Ea/kT) (EXPONENTIAL)
Y = B Ax . . . . ( a RAISED POWER X)
Y = B Xa . . . . ( X RAISED POWER a)
On taking logarithm these become additive

For example Log10 ( B Xa . exp(-Ea/kT) )
= Log10(B) + a. Log10 (X) + (-Ea/kT) . Log10 (e)
These are additive for variables (Log10 X) and
(1/T)
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97

Consider the following two sets of observations around
the target and the deviation of the average from the
target value.
Let m=75
Observation A: 55 58 60 63 65
y = 60.2
Dev. Of mean from target = 75 - 60.2 = 14.8
y = 75
Observation B: 50 60 76 90 100
Dev. Of mean from target = 75 - 75 = 0
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99
Conversion of Results into S/N

Ratios (Cont.)
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These two sets of observations may have

come from the two distributions shown in the
figure above.
Observe that the set B has an average value
which equals to target value, but has a wide
spread around it. For the set A, the spread is
smaller, but the average itself is quite far
from the target. Which of the two is better?
100
Conversion of Results into S/N

Ratios (Cont.)
Based on the average value the product
shown by obs. B appears to be better. Based
on consistency, product A is better. How an
one credit A for less variation? How does one
compare the distances of the averages from
the target? Surely comparing the averages is
one method. Use of S/N ratio offers an
objective way to look at the two
characteristics together.
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101
Computation of S/N Ratio
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102
Computation of S/N Ratio

(Cont.)
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103
Most Common S/Ns for the Static

Case
Nominal-is-Best (N.B.)
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104
Most Common S/Ns for the Static Case (Cont.)
y
Z = 10 log 2
s
2
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105

Case (Cont.)
Smaller-is-Better (S.B.)
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106
1 n 2
Z = 10 log yi
n i =1
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107

Case (Cont.)
Larger-is-Better (L.B.)
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108
n 1
2
i =1 y
Z = 10 log
n
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109
Target-the best
aim
y2
Z =10 log 2
s

= sample mean
s = sample standard deviation
to maximize Z through parameter design
Smaller-is-best
here,
Larger-is-best
here,
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n yi2
Z = 10 log i =1
n
n 1
2
i =1 y
Z = 10 log
n
needs to be maximized
needs to be maximized
110
But what about quality characteristics that approach

an ideal value?
Examples are
Efficiency : all efficiencies approach the ideal value of

100%
Weld strength : approaches the ideal strength of the
material
Critical temperature or Critical current density for High
Temperature superconductors (YBCO) :
These approach ideal values, say 92K and 108 A/cm2
Which SN-Ratio is most suitable among the following

?
smaller-the-better
LARGER-THE-BETTER
NOMINAL-the-BEST
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111
Taguchi Method is most effective when

there is at least one quality characteristic
that is sensitive to variations or NoIsE
Desirable Qualities
e.g. Nominal-the-Best type are sensitive to NoIsE
S/N Ratio
Z=
10 Log10 ( mean2 / Variance )

2
Question: the large of mean, the better the quality is?

Undesirable properties
e.g. Smaller-the-better type are also sensitive to NoIsE
S/N Ratio Z = 10 Log10 ( 1/n
= zero
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2
i
10 Log10 (Variance) . . . if ideal value
112
Best approach for experimental design

Maximize these ratios to minimize variability
to maximize system robustness
then
adjust target value to desired value
2-stage optimization!
Some drawbacks, however, to Taguchi approach
e.g. assumes and s are of equal importance/influence
+ noticeable confounding issues
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113

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THE QUALITY LOSS FUNCTION

Quality ultimate system performance measure

ENGN8101 Modelling and Optimization

Loss Function and Quality Level

In the past, % defective, process capability

How far from target can a system be before it should be

ENGN8101 Modelling and Optimization

Quality Loss Concept

Lower than target

Greater than target

ENGN8101 Modelling and Optimization

How can we use Quality Loss

ENGN8101 Modelling and Optimization

How can we use Quality Loss

ENGN8101 Modelling and Optimization

Traditional Quality Metric

All products within specifications equality good.

All products equally good

ENGN8101 Modelling and Optimization

Loss Function (Cont.)

Unfortunately, this definition has led to a mindset which becomes a barrier to

ENGN8101 Modelling and Optimization

Loss Function (Cont.)

ENGN8101 Modelling and Optimization

ENGN8101 Modelling and Optimization

The figure given in the next slide shows the

Distribution of color concentration

ENGN8101 Modelling and Optimization

The process capability of the Japanese-made television sets

ENGN8101 Modelling and Optimization

QUALITY LOSS FUNCTION

ENGN8101 Modelling and Optimization

Derivation of the Loss Function

ENGN8101 Modelling and Optimization

Derivation of the Loss Function (Cont.)

ENGN8101 Modelling and Optimization

Derivation of the Loss Function (Cont.)

ENGN8101 Modelling and Optimization

Derivation of the Loss Function (Cont.)

ENGN8101 Modelling and Optimization

- unifying concept of quality and cost

ENGN8101 Modelling and Optimization

ENGN8101 Modelling and Optimization

ENGN8101 Modelling and Optimization

ENGN8101 Modelling and Optimization

ENGN8101 Modelling and Optimization

Uses of the Loss Function

ENGN8101 Modelling and Optimization

Loss Function/Process Capability Index

(loss with current process)

Divide the first equation by the second to obtain

ENGN8101 Modelling and Optimization

Economic Consequences of Tightening

ENGN8101 Modelling and Optimization

Economic Consequences of Tightening Tolerances

With the original tolerance, the expected loss is

ENGN8101 Modelling and Optimization

Economic Consequences of Tightening Tolerances

ENGN8101 Modelling and Optimization

The Loss Function and

The loss function can also be used to justify

The Loss Function and Justification of

Total loss per unit of the current process: