In this article, we deal with a design problem for determining the levels of noise factors in the Taguchi method. First, the proposed levels by Taguchi method is reviewed in case of smaller-the-better performance characteristics. We obtain the optimal levels of noise factors minimizing the mean square error of SN(signal to Noise) ratio and compare the optimal levels with the levels proposed by Taguchi method under the first and second order models. Secondly, the concept of V-optimality is applied to determining the levels of noise factors.