Taguchi Loss Function

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Traditional Goal post View of Quality

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In the past, quality means “conformance to valid customer requirement”. That is as long as an output fell within specification limits around a target value (also called nominal value); it is deemed conforming, good or acceptable. This is known as goal post definition of quality.

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Losses are the minimum until lower specification limit (LSL) or upper specification limit (USL) is reached. Then suddenly, losses become positive and constant, regardless of the magnitude of the deviation from the nominal value.

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Taguchi Loss Function

100 75 50 25

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Taguchi says that as soon as quality characteristics depart from its exact mean or target, performance starts deteriorating with increased customer dissatisfaction, although the measurement may be well within the specification limits. Thus departure from mean is a quality loss, because the part may require rework at extra time and cost. Taguchi expresses this quality loss as a quadratic function, known as Quality Loss Function (QLF).
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The quality loss is taken to mean a cost to the customer (and the effect to the market share) as well as the company cost overheads through scrap or rework and loss of productive time. Hence this has been termed by Taguchi as a “loss to the whole society”.

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Nominal the best: some quality factors are such that the best value would be the target value; neither higher nor lower values are desired.
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Bigger the better: some quality factors are such that their values need to be set as high as possible, if possible at infinity.
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Smaller the better: some quality factors are such that their values needed to be set as small as possible, preferably zero.
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Taguchi Loss Function Equations
y = the measured value of the quality characteristic for a particular item of product. m = the nominal value, or target value for quality characteristic. A = the loss(cost) of exceeding specification limits (the cost to scrap a unit of output) d = the allowable tolerance from the nominal value that is used to determine specification limits. k = A/d2 = a constant. Ϭ = population standard deviation. s = sample standard deviation, when Ϭ is unknown. µ = population mean, if it is unknown then y* is used.

y* = average or mean of the measured values.
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Taguchi Loss Function For Single Piece Smaller better Bigger better Nominal better the the L(y)= k( y-m)2 L(y)= k(1/y)2 (2) (1) For Multiple Piece L(y)= k(Ϭ2+(y*-m)2 ) (4) L(y)=k/µ2 [1+3Ϭ2/ µ2] (5) L(y)= k[Ϭ2+(y*-m)2 or L(y)= k[s2+(y*-m)2 (6)

the

L(y) = k(y-m)2 (3)

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Design parameters
Material External diameter

Specification
S15C 11.1

Internal diameter 8.72+.012 of the large hole Internal diameter 7.95+0.12 of the small hole Thick measure 19.1-0.1 Distance measure Surface treatment H.L. H.V.
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47.6±0.1 S4 0.2-0.3 550-750
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Sample Standard Deviation, s Mean,y* Sample size, n Target, m Tolerance Upper Control Limit, UCL Maximum Loss per part

= = = = = = =

0.003 7.956 100 7.95 0.012 7.962 3.2

mm mm mm mm mm $

Taguchi Constant, k = 22222.22222 Average Loss per part, $ = 1.1002 Total loss for the whole sample, $ = 110.0177
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Diameter 7.950 7.951 7.952 7.953 7.954 7.955 7.956 7.957 7.958 7.959 7.960 7.961 7.962

Deviation 0.000 0.001 0.002 0.003 0.004 0.005 0.006 0.007 0.008 0.009 0.010 0.011 0.012

Loss, $ 0.00 0.02 0.09 0.20 0.36 0.56 0.80 1.09 1.42 1.80 2.22 2.69 3.20

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If the manufacturing company decides to keep the loss within ten cents per part, they should have the tolerance within +0.0003 mm and upper specification limit (USL) 7.9503 mm
Expected Loss per part, $ = 0.100

Tolerance, mm

=

0.0003

Upper Specification limit, USL, mm

=

7.9503

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Nominal The Best

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Smaller The Better

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Bigger The Better

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