Taguchi and VTA(variation Transmission Analysis) methods have been widely used recently as new methods for product design. In this study, Taguchi method using analysis of variance and VTA method using regression analysis are reviewed and compared with each other in terms of parameter design and tolerance design. In analysis of variance, variation of quality characteristics arises from noise factors, therefore the optimal levels of design factors are selected to minimize the effect of noise factors. n regression analysis, variation of quality characteristics arises from variation of each own design factors. As a method to reduce variation of these quality characteristics, sensitivity analysis was performed for each design factors. An example of calculating tolerance interval for the given defect rate in PPM is also introduced. Especially, the new method is suggested to increase the estimation accuracy of variation of quality characteristics through regression analysis.