The intent of this research is to develop and demonstrate viable methodologies for manufacturing applications of a Multivariate Cost of Poor Quality Loss Function (MVCOPQLF). The MVCOPQLF is derived from a newly developed framework, known as the Cost of Poor Quality Matrix. This framework integrates established cost of quality concepts with the intent of Taguchi's Loss Function model. Production scheduling results generated from MVCOPQLfs will be tested for sensitivity to transition paths and performance characteristic target values. Applications of the MVCOPQLF is a discrete parts manufacturing facility will also be modeled and demonstrated. The anticipated result is the advancement of the understanding and practicability of the loss function concept to one which may be used in industry to evaluate and optimize a wide range of operating decisions. Completion of this research will elevate the loss function concept to one which may, if properly implemented, substantially advance the way producers look at manufacturing activities -- a level where explicit consideration of cost of poor quality yields positive long-term results, and far less loss to society as a whole. //
