An Application of Taguchi Loss Function in Apparel Industry: A Case Study

Abstract

Ready Made Garments (RMG) sector is the single most important and biggest manufacturing industry in Bangladesh which is earning nearly about eighty percent of the country's total foreign currency. Having more than six hundred garments factories, almost all the sewing machines and their spare parts are imported from foreign countries. At the time of manufacturing these spare parts, produces set some tolerance with the nominal value which is quite acceptable to the buyers. But Genichi Taguchi believes that for parameter design any deviation from nominal value causes loss to the society including producer and buyer even though parameters are well within specification limits designed by the producer or given by the buyer. This paper deals with a case study which shows the monetary loss from a sewing machine part though the producer is supplying the part within specification limit by applying Taguchi Loss function.