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ISSN : 2005-0461(Print)
ISSN : 2287-7975(Online)
Journal of Society of Korea Industrial and Systems Engineering Vol.41 No.3 pp.145-153

Decision of Producer’s Specification Limits Considering Types of Loss Function

Dong-Hyuk Kim, Young-Bae Chung
Department of Industrial and Management Engineering, Incheon National University
Corresponding Author :


Taguchi regarded the concept of quality as ‘total loss to society due to fluctuations in quality characteristics from the time of supplied to the customer.’ The loss function is a representative tool that can quantitatively convert the loss that occurs due to the deviation of the quality characteristic value from the target value. This has been utilized in various studies with the advantage that it can change the social loss caused by fluctuation of quality characteristics to economic cost. The loss function has also been used extensively in the study of producer specification limits. However, in previous studies, only the second order loss function of Taguchi is used. Therefore, various types of losses that can occur in the process can’t be considered. In this study, we divide the types of losses that can occur in the process considering the first and second loss functions and the Spiring’s reflected normal loss function, and perform total inspection before delivering the customer to determine the optimal producer specification limit that minimizes the total cost. Also, we will divide the quality policy for the products beyond the specification limits into two. In addition, we will show the illustration of expected loss cost change of each model according to the change of major condition such as customer specifications and maximum loss cost.

손실함수의 형태를 고려한 생산자 규격한계의 결정

김동혁, 정영배
인천대학교 산업경영공학과