Abstract: In recent market and global requirements, the desires to provide higher level of quality in products and services for increasing market shares continues competitively among the manufacturers to ensure customer satisfaction will return with consistent orders. The important of product and process optimization has caused manufacturers focus greater attention to design optimization in order to stay competitive in the world market. The understanding on the fundamental of basic experimentation will be a starting point to improve process yield, product performance and productivity of company-wide operation. Thus, a more reliable and effective experimental approach subsequently will be the right choice to study the possible design factors that satisfy customers and process compatibility. This study presents the philosophy and method applied for Taguchi method design of experiment. The concept such as quality should be designed into the product, quality loss function, determining the optimization condition for the product or process, designing product and process that insensitive to the influence of uncontrollable factors or noise, signal-to-noise ratio and orthogonal arrays among the important terms in application of Taguchi method design of experiment.