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The Taguchi Loss Function is an equation that measures the “loss” experienced by customers as a function of how much a product varies from what the customer finds useful. His idea rocked the quality world because the common wisdom at the time held that if products met internal measures they were “good” and if they fell outside the limits they were “defects.” Taguchi looked at variation from the eyes of the customer and decided to grade on a curve. 

Elisabeth Swan

Elisabeth is a Master Black Belt at, the co-author of The Problem-Solver’s Toolkit and co-host of the Just-in-Time Cafe. For over 30 years, she's helped leading organizations like Amazon, Charles Schwab and Marriott International, Inc. build problem-solving muscles with Lean Six Sigma to achieve their goals.
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