Risk-based Taguchi Method — Robust Parameter Design with Risk Integration

The risk-based Taguchi method combines Genichi Taguchi's robust parameter design framework with explicit risk identification and quantification. By overlaying a risk assessment layer — typically drawing on failure mode analysis or probabilistic criteria — onto the standard signal-to-noise ratio optimization process, the approach selects factor settings that simultaneously maximize performance robustness and minimize the probability or severity of process/product failure.