A new family of quality loss functions

Abstract

Taguchi first developed the quality loss function to better estimate the economic losses incurred by manufacturers and customers caused by quality characteristics being off-target. The quality loss function measures the quality loss caused by a deviation of a quality characteristic from its defined target value. Several researchers have proposed different revised loss functions for overcoming some flaws of the Taguchi loss function. This paper recommends a new family of quality loss functions, which is very flexible, simple, and easy to implement. Three real case studies demonstrated the usability and capabilities of the proposed new loss function for quantifying and predicting quality losses.