Genichi Taguchi related his measure of quality (variation from the target spec) with economics, called the Taguchi Loss Function. It’s used to calculate the cost (in money) of a certain deviation from a target value. It assumes that the farther our quality characteristic is from our target value, the more costly it is to us.

We talk about how we can use the Taguchi Loss Functions as a way for us to set tolerances for our designs. Visit the podcast blog to get an interactive tool and the equations.

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ABOUT DIANNA
 Dianna Deeney is a product development process strategist with over 25 years of experience in regulated industries. She is president of Deeney Enterprises, LLC, where she helps product development teams make better decisions upstream — before costly design mistakes get built in.