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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 Managing Partner & Executive Advisor at GoLeanSixSigma.com. For over 25 years, she's helped leading organizations like Amazon, Charles Schwab and Starwood Hotels & Resorts build problem-solving muscles with Lean Six Sigma to achieve their goals.