Quality evaluation of domestic airline industry using modified Taguchi loss function with different weights and target values

The Taguchi loss function and its modification are used to evaluate service quality of a domestic airline industry. Service quality is classified into three categories: the nominal-the-better, the smaller-the-better and the larger-the-better characteristic. Different target values for the smaller the-better and the larger-the-better characteristic are discussed. The application of weight to the modified Taguchi loss function is also considered. Different weights used for the smaller-the-better characteristic are described. When the performance of a domestic airline is evaluated by cost loss, action is taken when the loss is greater than the competitors.