The TLF and the Pareto Principle Can Be of Significant Value
The challenges facing business have always been daunting but they have increased exponentially in recent years. Being successful requires the ever more skillful balancing of seemingly opposing objectives. Applying certain key quality theories can be an important strategy to create a competitive advantage. For now let’s focus on the Taguchi Loss Function (TLF) and the Pareto principle.
Organizations that make good decisions to strike the right balance between performance excellence and cost containment will win in the marketplace. With more than 45 years in industry, in many roles, it’s been my experience that the application of the TLF and the Pareto theory can help tip the balance.