Taguchi’s optimization philosophy sought find the best levels of control factors that would maximize the Signal-to-Noise (S/N) ratios based on Orthogonal Arrays (OAs). OAs, were balanced with respect to all the control factors with the minimum number of experimental trials. This in turn implies that the resources (materials and time) required for the experiments are also minimum.
Taguchi method divided all problems into Static or Dynamic categories. Dynamic problems had SIGNAL factors. Static problems do not have any signal factors so optimization was achieved by using the three S/N ratios (S, LTB, NTB). Dynamic problems optimized using two S/N ratios that included Slope and Linearity.
Taguchi had over 80 different S/N ratios for use in different engineering situations, even though the most widely used S/Ns were STB, NTB, and LTB.
Taguchi Methods used an 8-step process of planning, conducting and evaluating results of matrix experiments (ranging from Plackett-Burman type designs to other fractional factorial forms) to determine the best levels of control factors. The main goal was to keep the variance in the output very low given the presence of noise inputs. These considerations led to more robust products and processes.
Doug Montgomery’ in his Discover Summit 2015 “Flight of the Phoenix” address pointed out that even though the approaches Taguchi used were controversial; he “got the problem right”.
As Mark said it is important to be clear on what is meant by the S/N ratio and it’s importance for the objectives of the study where it is used.