Taguchi method is popular means to design robust products and processes. Although many industries have successfully used it, its real benefits were not realized and fully understood in many cases. This lack of success could be attributed to some certain factors, but mainly because the experiments were treated in isolation and not integrated into a continuous improvement strategy. To overcome these disadvantages, this thesis presents the results of the novel application of the GMDH neural network to learn Taguchi methodology used to the optimal design process. As a design tool, the GMDH is trained to model an optimal representation of the design interrelationship between design factors and a responsive variable. The predictive performance of the proposed neural Taguchi system using the GMDH network has been proved to be superior and robuster to the traditional Taguchi method.