Module Summary

Evaluating and establishing improvements we achieve in performance, cost or quality is common tasks we perform at end of a project completion. Generally, we also express such improvements achieved in terms of percentage of the current level of performance. However, when asked to quantify the same improvement in terms of dollars we seem to have difficult time. Fortunately, the Loss Function formulation proposed by Dr. Genechi Taguchi allows one to translate the expected performance improvement in terms of savings expressed in dollars. Using the Loss Function concept, the expected savings from the improvement in quality, i.e., reduced variation in the quality characteristic around the target can be easily transformed into cost. (See also QOS - Quality Operating System, Page 1)

This session will present a quick review of the product and process design improvement using the Taguchi design of experiment (DOE) and discuss how the Loss Function is used to convert the improved performance in to expected dollar saving. Basic theories are covered and application demonstrated through examples.

You would benefit most from this sessions if you have working knowledge of the DOE/Taguchi approach and wish to express improvements in terms of dollars.

Discussion Topics

1. INTRODUCTION

- Concepts

- Math model

- Purpose and application areas

2. EVALUATION OF $ LOSS

- With target value

- General quality characteristics

- When other distribution parameters are known

3. COMPUTATION OF SAVINGS FROM CHANGES IN

- S/N ratio

- Mean Squared Deviation (MSD)

- Std. Deviation and Average Value

4. RELATIONSHIPS BETWEEN LOSS AND PROCESS

CAPABILITY (Cpk)

5. GENERAL APPLICATION EXAMPLES

6. APPLICATION TO ACTUAL PROJECTS

Who Should Attend

This session is intended for expert quality specialist and scientific professionals who are experienced in experimental design technique. Person seeking advance knowledge about the Taguchi Loss Function will benefit the most from this session.

Deliverables

Attendees learn how to translate product and process performance improvements that are expressed in terms of standard deviation, S/N ratios, Cpk, etc. in to dollar savings. Attendees will receive brief seminar presentation materials.

Prerequisites

There is no minimum educational background requirement for this seminar. However, two or more years of college education in any field of science or engineering are helpful.

Program Length

1/2 day