Quality cost models. Taguchi loss functions

C. Taguchi Loss Functions as Continuous Quality Cost Models.401... 

This Section addresses cases with a continuous performance metric, y. We identify the corresponding problem statements and results, which are compared with conventional formulations and solutions. Then Taguchi loss functions are introduced as quality cost models that allow one to express a quality-related y on a continuous basis. Next we present the learning methodology used to solve the alternative problem statements and uncover a set of final solutions. The section ends with an application case study. 

Both situations with categorical and continuous, real-valued performance metrics will be considered and analyzed. Since Taguchi loss functions provide quality cost models that allow the different objectives to be expressed on a commensurate basis, for continuous performance variables only minor modifications in the problem definition of the approach presented in Section V are needed. On the other hand, if categorical variables are chosen to characterize the system s multiple performance metrics, important modifications and additional components have to be incorporated into the basic learning methodology described in Section IV. 

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