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The Power of Taguchi Methods to Impact Change in U.S. Companies

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The Power of Taguchi Methods to Impact Change in U.S. Companies The Power Of Taguchi Methods To Impact Change In u.s. Companies L.P. Sullivan .- he advancement of "quality engi­ been neutralized by success stories stand the concepts since this re­ T neering" as a technology to si­ in the application of Taguchi Meth­ quires many years of application. mUltaneously reduce cost and im­ ods. However, some benefit has (Today there are only six or seven prove quality was developed by the been derived through this controver­ specialists in the U.S. that have full noted Japanese engineering special­ sy and debate. Traditional statistical Taguchi knowledge.) Many U.S. ist, Genichi Taguchi. Since 1960 Dr. methods are more in focus and companies, however, have been Taguchi has received the Deming "quality engineering" using statistics very successful at applying Taguchi Prize in Japan on four separate oc­ has emerged as a separate technol­ Methods. Therefore, a large number casions for his contribution to the ogy. of specialists exist in supplier com­ field of quality engineering. On Oc­ Advancements in traditional sta­ panies. tobElr 7, 1986, in Pittsburgh, PA, Dr. tistics have been promoted by J. When Ford introduced this tech­ Taguchi received the most prestig­ Stuart Hunter, who received the nology to suppliers (October 1982), ious prize from the International Deming Award for Applied Statistics ITT was the pioneer in case study Technology Institute: The Willard F. in December 1986. This award is for development and they now have Rockwell Medal for Excellence in excellence in the application of sta­ over 2000 case studies. Jim Pratt, Technology. tistics and we are very pleased that ITT director of statistical methods, This medal is awarded to a Dr. Hunter has been recognized for was the first supplier executive to maximum of three individuals each his work. fully appreciate the power of year (no more than one from any The American Experience Taguchi Methods. Today he is a continent) for excellence in technolo­ As one of the major advances leader in this technology. Other gy. In particular, it recognizes the in the history of manufacturing in­ companies who have learned these recipient's contributions toward the dustries, Taguchi Methods are be­ methods include Sheller Globe, generation, transfer, and application ginning to have great impact on Aerojet Ordnance, Allied, Ford, Gen­ of technology for the betterment of changing the way U.S. companies eral Motors, Chrysler, Eaton, Dana, mankind. Following is a portion of operate to simultaneously improve General Tire, Johnson Controls, Po­ the inscription on Dr. Taguchi's quality and reduce cost. This paper laroid, Copeland, General Electric, medal "... Taguchi's major contri­ outlines several changes currently Goodyear, Kelsey-Hayes, Mercury bution has involved combining engi­ being experienced in certain U.S. Marine, United Technologies, Flex neering and statistical methods to companies. Products, Diversitech General, achieve rapid improvements in costs My first introduction to Taguchi Xerox, AT&T, Texas Instruments, and quality by optimizing product Methods was at Nippondenso in Davidson Rubber, A.O. Smith, Allen­ design and manufacturing process­ March 1982. Professor Yuin Wu. Bradley, Control Data, and the Budd es. His methods represent one of who translated Dr. Taguchi's works, Company. the major advances in the history of began supplier training for Ford in Applications experts have manufacturing industries." April 1983. Five years later, I am still emerged in each of these compa­ Many papers have been written learning about this technology, nies. Within Ford, there is a very over the past four years to evaluate which is not covered in traditional aggressive effort to apply Taguchi the technical aspects of Taguchi statistical literature. (The term Methods and develop case studies. Methods and to compare them with Taguchi Methods refers to parame­ Dr. W. H. Moore in the Body & As­ traditional statistical theory. Also, ter design, tolerance design, the sembly Division heads up a special there have been a great number of quality loss function, on-line quality task force on Taguchi Methods, and debates in the U.S. promoted by control, design of experiments using she is one of the most knowledge­ well known statistical specialists. I orthogonal arrays, and methodology able practitioners in U.S. industry believe the controversy has now applying for the evaluation of mea­ today. Bob Marshall, the Ford Body suring systems). Due to the recent popularity of Taguchi Methods in the U.S., many specialists are applying these meth­ ods. Few individuals really under- 18 Target & Chassis engineering director, is Explanation of Taguchi Methods and Quality Function personally sponsoring the develop­ Deployment ment of many case studies and the presentation of results in symposium Taguchi Methods and Quality Function Deployment (QFD) are major type reviews. elements of an overall business strategy known as Total Quality Control There are over 6000 case stud­ (TQC). TQC is sometimes also referred to as CWCC-Company Wide ies in U.S. companies. Japanese Quality Control. companies are the leaders in the Total Quality Control originated in Japan as a means in significantly application of Taguchi Methods. improving business operations through improved quality. One often misun­ Nippondenso, for example, com­ derstood aspect of TaC is that quality encompasses not just product "good­ pletes over 2600 applications per ness" but economics as well. The Japanese do not consider the NASA or year primarily to optimize product military high-cost approach to be quality! This can be illustrated with the design. Most Japanese companies accomoanying table. and several U.S. c'Jmpanies are Quality using Quality Function Deployment Low High (QFD) as the horizontal mechanism to identify conflicting design require­ I Low Junk ments where Taguchi applications Desired to would be most beneficial. o A good explanation of Taguchi C,) High Bad Business NASA Methods and QFD (see Fig. 1) was written by Bill Eureka, reliability The excellent Japanese companies have moved into the high quality/low manager for General Motors, CPC cost quadrant through the use of TQC techniques, of which Taguchi Methods Group. Ford and Chrysler have writ­ and QFD are the most powerful tools. ten similar definitions which are Taguchi Methods are a collection of techniques for reducing costs being fostered by many supplier through reduction of variation, which will always result in quality improve­ companies. (See the May and June ment! The primary methodology is based on statistical techniques which 1986 issues of Quality Progress for Genichi Taguchi has reduced to a simple form that hourly production workers more detailed reports on Quality in Japan can readily utilize. Taguchi Methods allow designs and manufactur­ Function Deployment). ing processes to be optimized in a manner which makes them insensitive to During the past three years in factors beyond the manufacturer's direct control (such as environmental the U.S., we have seen a significant usages and customer abuse), resulting in "forgiving" designs and processes. change in quality thinking and in en­ Thus designs become easier to build and manufacturing processes become gineering technology through the ap­ more capable, allowing for reduction (or elimination) of expensive inspection plication of Taguchi Methods. Al­ and rework operations. though this change has developed slowly (due to statistical controver­ Quality Function Deployment is a business planning tool which may sy), we are beginning to see where be applied at any point in the business, but is most effective when initiated at this technology will have a greater the earliest stages of product development. When applied at this point, impact on U.S. products than any customer requirements are defined, and a sequence of plans evolve for other individual concept or method ultimately identifying critical product characteristics and manufacturing proc­ yet devised. ess parameters-resulting in satisfaction of the original customer require­ ments. To Impact Change The use of QFD and Taguchi Methods has been instrumental in helping During a recent study mission Japanese companies to improve quality, reduce cost, cut product develop­ to Japan, the president of Toyoda ment time in half, and achieve major competitive market advantages. Gosei made some interesting re­ marks regarding change within a Fig. 1. company. Mr. Nemoto told us that Source: Bill Eureka, reliability manager for General Motors, CPC Group. managers at Toyoda Gosei are pro­ moted on the basis of change; how budget levels. In fact, U.S. manag­ ists have been successful in main­ they were able to impact change in ers who go beyond their job to cre­ taining the status quo for U.S. indus­ their job to help achieve company ate change are considered maver­ tries. In recent years there has been growth objectives (i.e., market icks and they rarely advance to a modest change in company opera­ share). He contrasted this with tradi­ higher levels in the company. U.S. tions through the application of sta­ tional U.S. managers who are evalu­ executives are uncomfortable with tistical process control (SPC). How­ ated on how well they perform with­ managers who promote change! ever, traditional Design of Experi­ in prescribed guidelines, specific The real value of Taguchi Meth­ ments (DOE) has had no impact at areas of responsibility, and fixed ods is to impact change in U.S. all unless modified for the Taguchi companies. Traditional statistical I> theory has created very little change in 30 years. U.S. statistical special- Summer 1987 19 way of thinking. It is the change that and a small company. Since March Leadership for the supplier was is important because without 1983, ITT has trained approximately provided by C.D. Lauer (Ford vice change we cannot improve the 1200 engineers in Taguchi Methods president of purchasing) who in May competitive position of U. S. prod­ and completed over 2000 case stud­ 1984 declared that Taguchi Methods ucts.
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