Taguchi Philosophy

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2. Overview (Lecture the 2nd)

HSE basis
Hazard / Risk
Taguchi Philosophy

3. HSE Basis

Policy - a set of ideas or a plan of what to do in particular situations that has been
agreed to officially by a group of people, a business organization
Procedure - is a document that is put together by groups within the organization,
and is used as a template when performing a particular task on the job.
Mission - defines the company’s business, its objectives and its approach to reach
those objectives, it focuses on today and what an organization does to achieve it.
Both are vital in directing goals
Vision - describes the desired future position of the company, it focuses on
tomorrow and what an organization wants to ultimately become
For example :
Mission: To attract and attain customers with high-valued products and services and
the most satisfying ownership experience in America.
Vision: To be the most successful and respected car company in America.

4. Hierarchy of Control

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6. Hazard / Risk

Hazard – any action or situation which has a potential source of harm or
adverse health effect on asset, environment or person(s) health.
Risk – is probability (the chance), high or low, that somebody / something
could be harmed by these and other hazards
Hazard + Risk = Incident / accident
Types of incidents:
Incident - an unexpected event that may result in property damage, but does
not result in an injury or illness
Accident - an unexpected event that may result in property damage, and does
result in an injury or illness to an employee. Bad event caused by error or by
chance
Nearmiss - is an unplanned event that has the potential to cause, but does not
actually result in human injury, environmental or equipment damage, or an
interruption to normal operation and didn’t face with worse case scenario.

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8. Hazard / Risk / Nearmiss / Accident

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10. Taguchi Philosophy

Genichi Taguchi – director of Japanese Academy of Quality. He was awarded
4 times with Deming Prize. He implemented the way in order to make product or
the process robust against their effect (internal / external) at the design stage.
Quality loss approach: This approach includes, but goes beyond, internal and
external failure costs. Conceptually it tries to collect data on many of the “hidden”
costs such as loss of sales revenue due to poor quality, process inefficiencies, and
losses when a quality characteristic deviates from a target value even though it is
within specification limits. Under this approach the costs can be estimated by
using the Taguchi quality loss function.

11. Taguchi Philosophy

Quality Loss occurs when the product deviates from the target or nominal value
– deviation grows , then loss increases
The main thing in Taguchi philosophy is to improve quality while reducing costs.
He implemented “robust” conception into the business
Taguchi requires manufactured products be created to meet the following
criteria:
1. To protect the product from sources of variability occurring within the
manufacturing process
2. To have minimum variability about the customer’s target values
3. To be robust to environmental factors encountered by the customer

12. Taguchi Philosophy

Taguchi formulated a number of principles, following which allows to
ensure the high quality of the products:
1. Losses - are damages caused to the consumer and the manufacturer
by deviation from the target value.
2. Quality needs to be planned, controlling the factors for reducing
scatter. For this, the concept of signal and noise is introduced. The
signal is the target value of the parameter, the noise is the deviation.
Noises are divided into external and internal. External noise is a variation
of the environment, characteristics of workers, wear. Internal noise production problems.
3. Eliminate losses best at the design stage and redesign.
4. Decisions that do not reduce costs are ignored.

13. Taguchi Method Quadratic Loss Functions

There are 4 major loss functions depend on design intention :
1. Nominal – the – best:
Whenever the quality characteristic Y has a finite target value, usually non zero and the
quality loss is symmetric on the either side of the target
L = k(y − m)