Hsin-Hung Wu* Department of Information Management, Taichung Healthcare and Management University, Wufeng, Taichung county 413, Taiwan, R.O.C.
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The target costing technique, mathematically discussed by Sauers, only uses the index along with Taguchi loss function and -R control charts to setup goal control limits. The new specification limits derived from Taguchi loss function is linked through the value to -R control charts to obtain goal control limits. In this study, the target costing technique is exploited by further considering the reflected normal loss function and the index together with -S control charts to setup goal control limits. Finally, an example is provided to illustrate how the target costing technique works.ABSTRACT
Keywords:
target costing technique; process capability index; loss function; control chart; goal control limit.
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ARTICLE INFORMATION
Accepted:
2004-04-23
Available Online:
2004-07-02
Wu, H.-H. 2004. An exploitation of target costing technique in quality management, International Journal of Applied Science and Engineering, 2, 189–196. https://doi.org/10.6703/IJASE.2004.2(2).189
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