An upside-down normal loss function-based method for quality improvement

Traditional measures of process quality do not offer much information on how much better or worse a process is when finding optimal settings of a given problem. The upside-down normal loss function (UDNLF) is a weighted loss function that provides a more reasonable risk assessment to the losses of being off-target in product engineering research. The UDNLF can be used in process design and optimization to accurately reflect and quantify the losses associated with the process in away which minimizes the expected loss of the upside-down normal (UDN). The function has a scale parameter which can be adjusted by the practitioners to account for the actual percentage of materials failing to work at specification limits. In this article, the 'target is best' case is addressed to estimate the expected loss of UDN due to variation from target in the robust process design and response surface modelling context. An approach is proposed to find the control factor settings of a system by directly minimizing the expected loss. The procedure and its merits are illustrated through an example.