00359 ¤76870165d8f770f870b6abb7be1062
18
Regret Indices and Capability Quantification
Robert L. Obenchain Eli Lilly and Company Indianapolis, Indiana
Abstract
A graphically-oriented statistical methodology for characterizing the capability of a process relative to almost any quantitative variable is introduced and illustrated. The method reÄ…uires a user-specified loss/regret function to Ä…uantify cost-of-poor-quality associated with process deviations from an intended target value. Taguchi's Ä…uadratic "loss to society" is one possible choice for this regret. The methodology ignores the time-series order of process results, but capability is quantified in a way that is also suitable for (i) compositing results over time, across variables, and across processes and for (ii) quality trend monitoring using powerful moving average methods.
Kev Words: Loss/Regret Functions, Cost-of-Poor-Quality, Performance Index, Poissonization, Equivalent Nonconformances and Expectancy, Taguchi's Cpm Index.
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