Manufacturing conformity assessment through Taguchi's quality loss function

Taguchi’s quality loss function is here proposed as a tool to evaluate costs connected to non conformity in manufacturing industries. First of all, Taguchi’s quadratic cost function is compared with the traditionally adopted zero defects cost function, and the differential effects of either function are analysed. Conceptual issues as well as practical ones are considered in this analysis. Results provided match in suggesting that the quadratic cost function, as compared with zero defects, is conceptually more consistent with the most advanced definitions of industrial quality and practically more suitable to support continuous improvement processes with a long-term, customer-oriented and profit-oriented perspective. Yet, in order to provide for a full utilisation of this tool inside quality costs reporting systems, a number of problems have still to be resolved. These problems too are highlighted and brought to the attention of researchers of this field.