What is the 'Taguchi Method Of Quality Control'

The Taguchi method of quality control is 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.

BREAKING DOWN '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. Percentage Of Completion Method

    The percentage of completion method is an accounting method in ...
  2. Cost Control

    The practice of managing and/or reducing business expenses. Cost ...
  3. Unit of Production Method

    The unit of production method calculates depreciation when the ...
  4. Life Expectancy Method

    A method of calculating annuity payments, by dividing the balance ...
  5. Direct Method

    The direct method is a method of creating the cash flow statement ...
  6. Value Engineering

    Value engineering is a systematic and organized approach to providing ...
Related Articles
  1. Personal Finance

    The Highest-Paying Engineering Careers

    Learn more about some of the highest-paying jobs in field of engineering. With just a bachelor's degree, most engineers in these jobs make well over $100,000.
  2. Small Business

    Kaizen: An American Idea Gets A Japanese Makeover

    This manufacturing philosophy – made famous by the likes of Toyota – had its start in postwar Japan with an American statistician.
  3. Investing

    Introduction To Bonds

    Find out how this method of debt investment is used to finance various levels of government and private companies.
  4. Personal Finance

    Controller: Career Path & Qualifications

    Find out what it takes to become a financial controller, starting with undergraduate educational requirements and moving into professional certification.
  5. Managing Wealth

    Controller: Job Description & Average Salary

    Learn about becoming a controller and what the job entails. Understand the education and skills required, and how much money you can expect to make.
  6. Investing

    How to Choose the Best Stock Valuation Method

    Don't be overwhelmed by the many valuation techniques out there - knowing a few characteristics about a company will help you pick the best one.
  7. Investing

    A Quality Way to Reduce Volatility

    The quality factor is a smart beta strategy to consider when volatility rises.
  8. Investing

    Two Approaches to Building a Low-Risk Portfolio

    Building a portfolio consisting of low-risk assets is achieved primarily by using one of two principal low-volatility strategies.
  9. Financial Advisor

    Which Economy Is Larger - The United States or China?

    China's economy may be larger than the U.S. economy, but it all depends on which exchange rate method you use to make the GDP comparisons.
RELATED FAQS
  1. What is the difference between research and development and product development?

    Understand the difference between research and development and product development. Learn why a company would want to invest ... Read Answer >>
  2. Is variance good or bad for stock investors?

    Learn how high variance stocks are good for some investors and how diversified portfolios can reduce variance without compromising ... Read Answer >>
  3. Why does the Internal Revenue Service (IRS) care about accounting practices?

    Learn why the Internal Revenue Service cares about accounting practices, as these ensure the accurate reporting of financial ... Read Answer >>
Hot Definitions
  1. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going ...
  2. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  3. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  4. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  6. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
Trading Center