A target costing technique for considering non-normal process data

Abstract

This study has extended target costing technique originally discussed by Sauers mathematically by considering the non-normally distributed process data. When the underlying process data are non-normally distributed, the new specification limits derived from Taguchi loss function is linked through the non-normality-based Ĉ_p – R value to non-normality-based control charts to obtain goal control limits. A framework of the extending target costing technique has been established to deal with non-normal process data. Moreover, an example is illustrated to show the usefulness of the extended target costing technique.

Keywords:

• Target costing technique
• control chart
• goal control limit
• non-normal data