In this study, a model and an analysis method for parameter design is presented a linear relation between the input signal and the ideal value of a performance characteristic. Furthermore, There presented a new performance measure, expected quality loss after adjustment, which is proved to be equivalent to Taguchi's SN ratio approximately. On the basis of this, a two-step optimization procedure is proposed for parameter design considering the signal factor and the quality characteristics with continuous variable. Proposed procedure and Taguchi two-stage procedure are compared.