A feedback control system for quality characteristics is one of the most crucial components in Taguchi’s on-line quality management. In this article, three problems in Taguchi’s on-line quality feedback control system are discussed. Furthermore, countermeasures for improving the system are proposed. First, the quality loss of products that are out of control is reestimated by approximating the probability density of their quality characteristic value to a linear distribution. Second, the quality loss of products that are under control is reestimated by approximating the probability density of their quality characteristic value to a normal distribution. Third, the decreased profit resulting from a process shutdown, which is excluded in Taguchi’s on-line quality feedback control system, is considered in calculating the adjustment cost. The management cost and quality loss constitute the total quality cost. In the improved on-line quality feedback control system, the optimal measurement interval and optimal administrative boundary are calculated by minimizing the total quality cost using an iterative method. An example of the adjustment of the administrative boundary and the measurement interval for manufacturing automobile parts is presented to illustrate the effectiveness of the improved on-line system.