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Taguchi Loss Function:
Taguchi's quadratic loss function is a siöple meaningful function for approximating the quality loss in most situations. It quantifies the variability present in a process. Therefore, it is an effective measure for evaluating the effect of quality improvements, determining the economic consequences of tightening tolerances as a way to improve quality and justifiying the quality improvements.
(Nanua Singh, Computer-Integrated Design and Manufacturing 1996, pg. 354)

Information Interpretation:

At this step, the information is translated into a detailed list of customer/market requirements that must be satisfied by a product. That is, the information gathered is interpreted into customer/market needs. A list of product specifications is prepared that guides the product development process. Although this list is not a rigid item and can be changed and refined when necessary, it is important to maintain the basic structure of the specifications in order not to violate customer needs.

(Computer-Based Design and Manufacturing, Emad Abouel Nasr, Ph.D. Ali K. Kamrani, Ph.D., p10)

Economic Order Quantity:

The economic order quantity (EOQ) is the quantity of goods that should be ordered at one time to ensure the lowest total inventory costs (holding cost plus ordering cost). There is a tradeoff between holding costs and ordering costs. When the order quantity is small and the inventory is kept low, the holding costs are also low. The ordering costs, however, are high, because orders must be placedoften and more clerical and receiving department time is needed. When the order quantities are large and inventory is kept high, the holding costs are high (more insurance, taxes, rent), but the ordering cost is low—fewer requisitions must be processed, and receiving operations are less frequent.

(Sensors and Control Systems in Manufacturing, Sabrie Soloman, Ph.D., Sc.D., MBA, PE; p547-548)

Fault-Tree Analysis (FTA):

Fault-tree analysis is substantially different from FMEA in that it is deductive rather than inductive. FTA starts with what the user experiences and traces back through the system to determine possible alternative causes. The focus is on the product, system, or subsystem as a complete entity. FTA can provide an objective basis for:
(1) analyzing system design,
(2) performing tradeoff studies,
(3) analyzing common-cause failures,
(4) demonstrating compliance with safety requirements
(5) justifying system changes and additions
(Standart Handbook of Machine Design, Charles O. Smith, Sc D., RE, p107)