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Parameter design is an engineering methodology intended as a cost-effective approach for improving the quality of products and processes. The assumption is that there are both controllable factors (control variables) and uncontrollable/difficult to control factors (noise variables) that operate on the quality characteristic of a process. The goal of parameter design is to choose the levels of the control variables that optimize a defined quality characteristic while minimizing the variation imposed on the process via the noise variables. Parameter design was popularized in the mid 1980s by Japanese quality consultant Genichi Taguchi. A panel discussion edited by Nair summarized important responses to Taguchi's ideas and methodology. In the last decade, there have been many applications and new developments in this important area. This review paper focuses largely on the work done since 1992, but a historical perspective of parameter design is also given.

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