Parameter design is the core of the Taguchi method, and its purpose is to design product or processes such that the performance of product becomes robust to noise. Taguchi recommends to use the so called orthogonal arrays for parameter design. The purpose of this paper is to clarify the principles involved in constructing the Taguchi orthogonal arrays. Understanding such principles may be useful for finding better ways of utilizing the Taguchi orthogonal arrays as well as for developing better experimental designs.