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.
|Number of pages||10|
|Journal||Journal of Systems Science and Systems Engineering|
|Publication status||Published - 2007 Dec 1|
All Science Journal Classification (ASJC) codes
- Control and Systems Engineering
- Information Systems