Abstract

System design, parameter design and tolerance design are the three stages of design process as presented by G. Taguchi. Systems design identifies the basic elements of the design to provide new or improved products to customers. Parameter design determines the optimal parameter settings, which will minimize variation from the target performance of the product. Tolerance design finally identifies the components of the design, which are sensitive in terms of affecting the quality of the product, and establishes tolerance limits that will give the required level of variation in the design. Most studies have focused primarily on optimizing the parameter design or tolerance design for multiple static quality characteristics. In this paper, a mathematical formula corresponding to the model is derived from Taguchi's quadratic quality loss function to minimize the expected total cost for the parameter design of multiple dynamic quality characteristics. When the optimal parameter design is not sufficient to reduce the output variation, the first-order Taylor series expansion is then used to analyse the variations of noise factors for optimizing the tolerance design. It concludes with an example demonstrating this approach.

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