Taguchi used loss functions to a good effect. Getting an outcome on a target is a need. Reacting to individual items within and outside specifications can be counter-productive. Costs are usually considered as a whole. Costs should be considered as cost to society. Taguchi’s methods also focused on the need of safety margins in considering costs. Taguchi laid a lot of stress on unavoidable losses.
These losses should be avoided. Taguchi worked on formulating methods to minimise such losses and hence eliminating them. Taguchi also worked on bringing in statistics in it by incorporating the concepts of variance, Taylor series, random variables etc. Taguchi’s strategy of quality engineering focused on parameter, system and concept design. Taguchi’s methods are widely implemented in areas ranging from government policymaking to complex robust designs.