Management Notes

Reference Notes for Management

Taguchi’s quality loss function is based on a

Taguchi’s quality loss function is based on a

A) quadratic equation.
B) negative exponential distribution.
C) linear equation.
D) binomial distribution.

The Correct Answer for the given question is Option D) binomial distribution.

Answer Explanation

Quality Loss Function

When a characteristic deviates from its target value, an algebraic function illustrates the loss in quality. It is often expressed in monetary terms. The term was coined by Dr. Genichi Taguchi, whose research suggests that quality losses are proportional to the deviation from target. As described by Taguchi, the quality loss function measures the loss imparted to society by a product from the time of its design until its shipment to the customer. His definition of quality was conformity around a target value with a lower standard deviation in outputs.

As a result of Taguchi’s Quality Loss Function concept, cost, target, and variation are combined in one metric, with specifications as the secondmost factor. Taguchi defined quality as the loss caused to society when a product is shipped. A society loses money if it cannot meet customer requirements, perform at its optimal level, or experience harmful side effects.Taguchi’s Quality loss function made a significant contribution to the field of Quality management and manufacturing industry. This function changed how businesses considered costs of quality and the losses associated with poor quality products. All values that fall within the specification limits create a loss owing to poor quality, but not all create equal losses. If the characteristic is close to the target value, the loss value will be smaller.

It does not only include the cost of manufacturing a poor product. The societal costs are also included. In order to explain this loss, he proposed a quadratic function that is dependent on the variability of the quality characteristic and the process capability.
The loss value is related to the process capability, since the process capability indicates how consistent the Quality parameter is, and how close the parameter’s performance value lies to the targeted value/average value. Thus, processes that have fewer variations will incur lower costs for poor quality. According to Taguchi, variation directly affects Quality and, therefore, Customer satisfaction and company revenue.

The management approach that emphasized ways to manage work more efficiently is the ___ approach.

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