Heidelberg Manufacturing specifies the quality characteristic for one of its key components to be 154.0" ± 4.0. The cost of failure is estimated to be $8,000 per unit. Using the Taguchi Quality Loss Function (QLF) the firm has estimated the loss, L(x), at the quality characteristic that the firm has experienced, x, to be $4,500. What is the estimated loss (to the nearest dollar) if the deviation from the value of the quality characteristic doubled?
A) $4,000.
B) $9,000.
C) $16,000.
D) $18,000.
E) $32,000.

Question

Quizplus · Accepted Answer

According to the Taguchi Quality Loss Function, the estimated loss increases quadratically as the deviation from the target specification increases. If the deviation from the quality characteristic value doubles, it means that the deviation becomes 8.0 (4.0 x 2). Using the QLF, the estimated loss at this new deviation would be:

L(x) = 4500 + ((8000/16) x (8.0)^2)
L(x) = 4500 + 32,000
L(x) = $36,500

Therefore, the estimated loss would be $36,500 if the deviation from the value of the quality characteristic doubled.

Heidelberg Manufacturing Specifies the Quality Characteristic for One of Its