Taguchi Loss Function,; quality cost,; target costing
Abstract :
[en] Taguchi introduced a new philosophy in quality control that accounts for the economic loss associated to process variation measured by deviations from the target value of a product quality characteristic. The Taguchi loss function has been considered in the design of control charts only for the computation of costs associated with nonconformities. This paper considers sample statistics based on the Taguchi loss function as a means to implement Shewhart control charts monitoring both the deviation from the target and dispersion of normally distributed quality characteristics. The aim of this proposed control chart is to perform on-line quality control of a process by monitoring its quality loss cost performance over time. To compute the quality loss performance, we consider a nominal-the-best quality characteristic. The statistical performance of the proposed control charts has been evaluated and compared with that of widely used control charts. Implementing target costing philosophy by means of one of the proposed charts is also discussed. An example illustrates the Taguchi control chart in a practical implementation.
Disciplines :
Quantitative methods in economics & management
Author, co-author :
Celano, Giovanni; University of Catania, Catania, Italy > aDepartment of Industrial Engineering,
Faraz, Alireza ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Statistique appliquée à la gestion et à l'économie
Saniga, Erwin; University of Delaware, Newark, Delaware 19716, USA > Department of Business Administration
Language :
English
Title :
Control Charts monitoring product’s loss to society
Alternative titles :
[en] Taguchi Control Charts
Publication date :
December 2014
Journal title :
Quality and Reliability Engineering International
ISSN :
0748-8017
eISSN :
1099-1638
Publisher :
John Wiley & Sons, Inc. - Engineering
Volume :
30
Issue :
8
Pages :
1393-1407
Peer reviewed :
Peer Reviewed verified by ORBi
Funders :
Fonds de la Recherche Scientifique (Communauté française de Belgique) - F.R.S.-FNRS; IAP research network grant nr. P7/06 of the Belgian government (Belgian Science Policy).
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