The Taguchi Loss Function (illustrated) taught us that all quality inside of specification is not equal. The old view was that anything “in spec” was equally OK, but Taguchi taught that quality and cost suffer as we get further from the design target. This is an important core concept in quality improvement, which drives us to work toward perfection in the Lean approach.
My friend Ron Pereria has done a good job of writing about Taguchi’s work, as has Peter Abilla. Today, we mourn a man who made a great contribution to quality improvement.
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Now Available – The updated, expanded, and revised 3rd Edition of Mark Graban’s Shingo Research Award-Winning Book Lean Hospitals: Improving Quality, Patient Safety, and Employee Engagement. You can buy the book today, including signed copies from the author.