A framework of setting up goal control limits of target costing for non-normal distributions

Hsin Hung Wu, Fong Jung Yu

Research output: Contribution to journalArticle


This study provides a framework of target costing to extend its original scope when the underlying distribution is non-normal. The new specification limits can be derived by listening to the market price from Taguchi loss function. Later, the new specification limits can be linked through the non-normality-based Ĉ pk value along with non-normality-based X̄-R control charts to derive goal control limits. Moreover, an example is provided to illustrate the usefulness of the proposed framework of target costing by relentlessly reducing cost and improving product quality to gain competitiveness in the marketplace.

Original languageEnglish
Pages (from-to)424-433
Number of pages10
JournalJournal of Systems Science and Systems Engineering
Issue number4
Publication statusPublished - 2007 Dec 1


All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Information Systems

Cite this