Taguchi Method

The quality of a product is one of the most important factors that determine a company’s sales and profit. Quality is measured in relation with the characteristics of the products that customers’ expect to find on it, so the quality level of the products is ultimately determined by the customers. The customers’ expectations about a product’s performance, reliability and attributes are translated into Critical-To-Quality (CTQ) characteristics and integrated in the products’ design by the design engineers. While designing the products, they must also take into account the resources’ capabilities (machines, people, materials…), i.e. their ability to produce products that meet the customers’ expectations. They specify with exactitude the quality targets for every aspect of the products.

But quality comes with a cost. The definition of the Cost Of Quality is contentious. Some authors define it as the cost of non-conformance, i.e. how much producing nonconforming products would cost a company. This is a one sided approach since it does not consider the cost incurred to prevent non conformance and above all in a competitive market, the cost of improving the quality targets. The cost of quality is traditionally measured in terms of the costs conformance and the cost of nonconformance to which we will add the cost of innovation. The cost of conformance includes the appraisal and preventive costs while the cost of non-conformance includes the costs of internal and external defects.

Pensonic should focus on the design of its products before the real manufacture of energy-saving goods can be produced in full-force. The technical specialists and engineers can work together to design the processes used and the products to be products so that efficiency can be achieved when the production begins. Pensonic should examine its competitors’ products to find a new method and equipment to produce energy-saving devices. After the causes are identified, the company should test their products’ usage and capabilities to meet customers’ expectations. Pensonic should equip their employees with the necessary training and knowledge to able them to design and produce products that are expected. This ensures that when the production of the products is in full force, the employees have sufficient training and knowledge.