quality loss function


Also found in: Acronyms.

quality loss function

a technique that identifies the costs associated with QUALITY failures. It demonstrates the increase in costs as the product deviates from specification. Using the formula L = D2 x C where L = cost. D = deviation and C = the cost of avoiding the deviation.
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Taguchi proposed that performance degradation can be measured as a deviation from some target value as a quadratic quality loss function (fig.
Clearly, the quality loss function is a way to show the economic value of reducing variability and staying closer to the target value.
Since I believe that cost is more important than quality, I have devised the Quality Loss Function (QLF), a quadratic equation that allows engineers to evaluate quality in financial terms: The cost of reworking or scrapping a product, the cost of warranty, or the cost of such intangibles as customer inconvenience or goodwill increases by the square of the deviation of the product from its target function.
For target criteria (nominal is the best), as in the case of obtaining aquartz monocrystals dimensional stability, relation (3) is used for Quality Loss Function.
The other main result of the quality loss function is that the farther a product's characteristics vary from the "proper" values, the greater the cost, which implies that it is a continuous function.

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