An Exploitation of Target Costing Technique in Quality Management

The target costing technique, mathematically discussed by Sauers, only uses the p C index along with Taguchi loss function and X -R control charts to setup goal control limits. The new specification limits derived from Taguchi loss function is linked through the p C value to X -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 pk C index together with X -S control charts to setup goal control limits. Finally, an example is provided to illustrate how the target costing technique works.