Genichi Taguchi related his measure of quality (variation from the target spec) with economics, called the Taguchi Loss Function. It’s used to calculate the cost (in money) of a certain deviation from a target value. It assumes that the farther our quality characteristic is from our target value, the more costly it is to us.We talk about how we can use the Taguchi Loss Functions as a way for us to set tolerances for our designs. Visit the podcast blog to get an interactive tool and the equations.Ready to apply this to your project?→ Schedule a free discovery call: Dianna's calendarWant insights like this?→ Subscribe to my newsletter: qualityduringdesign.substack.comLearn the full framework:→ Get the Book: Pierce the Design Fog ABOUT DIANNADianna Deeney is a quality advocate for product development with over 25 years of experience in manufacturing. She is president of Deeney Enterprises, LLC, which helps organizations and people improve engineering design.

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