
2  LITERATURE REVIEW 
The  Six Sigma  philosophy  maintains  that  reducing 
‘variation’  will  help  solve  process  and  business 
problems (Pojasek, 2003). This quality management 
methodology  is  extensively  used  to  improve 
processes,  products  and/or  services  by  discovering 
and  eliminating  defects.  The  goal  is  to  streamline 
quality  control  in  manufacturing  or  business 
processes so there is little to no variance throughout. 
The  strategic  use  of  Six  Sigma  principles  and 
practices  ensures  that  process  improvements 
generated in one area can be leveraged elsewhere to a 
maximum advantage, resulting in quantum increasing 
product  quality,  continuous  process  improvement 
resulting in corporate earnings performance (Sharma 
2003). 
There is still a limited number of reported flexible 
manufacturing system optimization using Six Sigma 
or  a  combination  of  both  Lean  principles  and  Six 
Sigma. Moreover, there is virtually no documentation 
on the merge of Six Sigma and Taguchi Quality Loss 
Function  in  attempt  to  optimize  a  process  and  or 
system. Sharma (2003) also mentions that there are 
many  advantages  of  using  strategic  Six  Sigma 
principles in tandem with lean enterprise techniques, 
which can lead to quick process improvement and/or 
optimization.  More  than  95%  of  plants  closest  to 
world-class  indicated  that  they  have  an established 
improvement  methodology  in  place,  mainly 
translated into Lean, Six Sigma or the combination of 
both. Valles et. al 2009 use a Six Sigma methodology 
(variation reduction) to achieve a 50% reduction in 
the electrical failures in a semi-conductor company 
dedicated to the manufacturing of cartridges for ink 
jet  printers.  Han  et  al.  2008  also  use  Six  Sigma 
technique to optimize the performance and improve 
quality  in  construction  operations.  Hansda  et.  al 
(2014) use a Taguchi QLF in a multi-characteristics  
optimization  scheme  to  optimize  the  response  in 
drilling of GFR composites. Tsui (1996) proposes a 
two-step procedure to identify optimal factor settings 
that minimize the variance and adjust to target using 
a robust design inspired from Taguchi methodology. 
Zhanga et. al (2013) use a QLF to adjust a process in 
an experimental silicon ingot growing process.  
3  THE ROBUST 
DESIGN - (DEFINE) 
Being part of  what is  known today as  the Taguchi 
Methods,  Robust  Design  includes  both  design  of 
experiments concepts, and a particular philosophy for 
design in a more general sense (e.g. manufacturing 
design).  Taguchi  sought  to  improve  the  quality  of 
manufactured goods, and advocated the notion that 
“quality” should correspond to low variance, which is 
also  the  backbone  of  the  Six  Sigma  methodology 
today as it seeks a reduction of variance as a means to 
stabilize a process and, hence, improve “quality”. The 
present  study  uses  a  robust  design  configuration 
inspired  by  Taguchi  robust  design  methodology. 
However,  because  of  the  high  amount  of  criticism 
against Taguchi’s experimental design tools such as 
orthogonal arrays, linear graphs, and signal-to-noise 
ratios,  the  robust  design  formulation  adopted  here 
avoids  the  use  of  Taguchi’s  statistical  methods  and 
rather  uses  an  empirical  technique  developed  by 
Tshibangu  (2003).  Overall,  implementing  a  robust 
design  methodology  or  formulation  requires  the 
following steps: 
•  Define the performance measures of interest, the 
controllable factors, and the uncontrollable factors or 
source of noise. 
•  Plan  the  experiment  by  specifying  how  the 
control parameter settings will be varied and how the 
effect of noise will be measured. 
•  Carry out the experiment and use the results to 
predict improved control parameter settings (e.g., by 
using  the  optimization  procedure  developed  in  this 
study). 
•  Run  a  confirmation  experiment  to  check  the 
validity of the prediction. 
In  a  robust  design  experiment,  the  settings  of 
control parameters are varied simultaneously in few 
experimental  runs,  and  for  each  run,  multiple 
measurements of the main performance criteria are 
carried out in order to evaluate the system sensitivity 
to noise.  
This  study  investigates  the  FMS  performance 
with  respect  to  the  mean  flow  time  (MFT)  and 
throughput  rate  (TR)  separately  by  considering  5 
variables Xi as controllable parameters, namely: i) the 
number of AGVs (X
1
), ii) the speed of AGV (X
2
), iii) 
the queue discipline (X
3
), iv) the AGV dispatching 
rule  (X
4
),  v)  and  the  buffer  size  (X
5
).  These 
parameters are not the only variables susceptible to 
affect  the  performance  of  the  FMS  under  study. 
However, because one objective of the research is to 
design a robust FMS, the parameters considered here 
are  those  related  to  the  performances  of  the  most 
costly and vulnerable components of the system, also 
potential sources of disturbances, namely: machines 
and  material  handling  (AGVs).  The  controllable 
Taguchi Loss Function to Minimize Variance and Optimize a Flexible Manufacturing System (FMS): A Six Sigma Approach Framework
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