The purpose of parameter design is to determine optimal settings of design parameters of a product or a process such that the performance characteristics of a product exhibit small variabilities around their target values. Taguchi made significant contributions in this area. However, his analysis of the problem focused on only one performance characteristic or response, although in product and process design, multiple performance characteristics are more common. The critical problem in dealing with multiple performance characteristics is how to compromise the conflict among the selected levels of the design parameters for each individual performance characteristic.
This thesis presents an algorithm for solving the parameter design problem with multiple performance characteristics. A weighted loss function which is an extended form of Taguchi's quality loss function is derived and design parameters are reclassified according to a new criterion. The whole procedure is computerized. An existing case study is solved by the proposed method, and a better result is obtained.