Module+24000+XVI+Formulas+(Equations)

XVI. Module 24000 Formulas (Equations) sw

__**The Multiplier Method**__:

Assumes that the total failure cost is simply some multiple of measured failure costs: Total external failure cost = //k//(Measured external failure costs)

__**The Taguchi Loss Function**__:

Can be described by the following equation:

// L(y) // = //k(y// – //T)// 2

where

//k//= A proportionality constant dependent upon the organization’s external failure cost structure //y// = Actual value of quality characteristic //T// = Target value of quality characteristic //L// = Quality loss

To apply the Taguchi loss function, //k//must be estimated and // k // is computed by dividing the estimated cost at one of the specification limits by the squared deviation of the limit from the target value:

// k = c/d // 2

where

//c// = Loss at the lower or upper specification limit //d// = Distance of limit from target value