A GENERALIZED LOSS FUNCTION FOR PROCESS OPTIMIZATION

The use of loss functions for measuring the undesirability associated with failure to achieve target values for manufacturing product charac teristics is widespread in industry. This study presents a generalizat ion of one of the most commonly used loss functions and compares the t wo functions based on five theoretical criteria. A simulation involvin g multiple probability distributions for a single product characterist ic is used to compare the performance of the loss functions. An exampl e from the manufacture of helicopter transmission gears is used to emp irically demonstrate the superiority of the generalized loss function over the conventional loss function.