It is more than a decade since Genichi Taguchi's ideas on quality improvement were inrroduced in the United States. His parameter-design approach for reducing variation in products and processes has generated a great deal of interest among both quality practitioners and statisticians. The statistical techniques used by Taguchi to implement parameter design have been the subject of much debate, however, and there has been considerable research aimed at integrating the parameter-design principles with well-established statistical techniques. On the other hand, Taguchi and his colleagues feel that these research efforts by statisticians are misguided and reflect a lack of understanding of the engineering principles underlying Taguchi's methodology. This panel discussion provides a forum for atechnicaldiscussion of these diverse views. A group of practitioners and researchers discuss the role of parameter design and Taguchi's methodology for implementing it. The topics covered include the importance of variation reduction, the use of noise factors, the role of interactions, selection of quality characteristics, signal-to-noise ratios, experimental strategy, dynamic systems, and applications. The discussion also provides an up-to-date overview of recent research on alternative methods of design and analysis.