Taguchi Method Of Quality Control

AAA

DEFINITION of 'Taguchi Method Of Quality Control'

An approach to engineering that emphasizes the roles of research and development, product design and product development in reducing the occurrence of defects and failures in products. The Taguchi method considers design to be more important than the manufacturing process in quality control and tries to eliminate variances in production before they can occur.

INVESTOPEDIA EXPLAINS 'Taguchi Method Of Quality Control'

Genichi Taguchi, a Japanese engineer and statistician, began formulating the Taguchi Method while developing a telephone-switching system for Electrical Communication Laboratory, a Japanese company, in the 1950s. As a result of his success, he eventually became well-known in both Japan and the United States, with companies such as Toyota, Ford, Boeing and Xerox adopting his methods.

RELATED TERMS
  1. Quality Control

    A process through which a business seeks to ensure that product ...
  2. Acceptable Quality Level - AQL

    A statistical measurement of the maximum number of defective ...
  3. Quality Management

    The act of overseeing all activities and tasks needed to maintain ...
  4. Six Sigma

    A quality-control program developed in 1986 by Motorola. Initially, ...
  5. Acceptance Sampling

    A statistical measure used in quality control. A company cannot ...
  6. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
RELATED FAQS
  1. Which stocks in the industrial sector pay the highest dividends?

    In the industrial sector, some of the companies that pay the highest dividends include Highway Holdings Limited, OCI Partners ... Read Full Answer >>
  2. What are some examples of prime cost items?

    In business finance, prime costs are the two types of basic expenses required to produce a product for sale: raw materials ... Read Full Answer >>
  3. What economic indicators are important to consider when investing in the chemicals ...

    The most important economic indicators to consider when investing in the chemicals sector are economic growth, interest rates, ... Read Full Answer >>
  4. What economic factors affect the performance of the consumer packaged goods industry?

    Three of the primary economic factors that influence the performance of companies in the consumer packaged goods (CPGs) industry ... Read Full Answer >>
  5. What mutual funds can be used for investing in the industrial sector?

    The industrial goods sector provides investors access to companies that engage in activities such as aerospace and defense, ... Read Full Answer >>
  6. What is the prime cost formula?

    The term "prime cost" refers to the direct costs of manufacturing an item. It is calculated by adding the cost of raw materials ... Read Full Answer >>
Related Articles
  1. Investing

    The Case For Stocks Today

    Last week, U.S. equities advanced with the S&P 500 Index notching new records. Investors are now getting nervous with rate and currency volatility spiking.
  2. Investing

    Which Dow Jones Stocks are Safe? Which are Risky?

    In a situation where our sustained bull run could turn into a sell-off rather quickly, here are four somewhat safe Dow stocks and four to be wary of.
  3. Economics

    The Big Chill: What’s Wrong With The U.S. Consumer

    Based on the most recent April data, investors may, once again, be disappointed when the second-quarter gross domestic product (GDP) report comes in.
  4. Economics

    How To Calculate The GDP Of A Country

    We explain how to calculate the GDP of a country using two different approaches.
  5. Economics

    Infrastructure Investment & Institutional Reforms

    There has been a lot of buzz in the market lately about the prospect for growth and stability in Latin America.
  6. Investing

    Fundamentals Of How Brazil Makes Its Money

    While it has an abundance of resources, including people, Brazil needs to begin to refocus its management and development strategies.
  7. Economics

    How Is The GDP Of India Calculated?

    India is a front-runner among developing economies. Investopedia explains how India calculates its GDP, an indicator of economic health and performance.
  8. Investing

    How India Makes Money

    India currently has the ninth largest nominal GDP (and third largest in PPP) in the world.
  9. Economics

    How China Makes Money

    China has the first or second largest GDP in the world but is not nearly as developed as others in the top 10.
  10. Economics

    Will The US Economy Rebound In The 2nd Quarter?

    Most investors know that U.S. 1st quarter growth numbers aren’t pretty. Economic statistics have been missing expectations by the largest margin since 2009

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center