Pandra Manufacturing specifies the quality characteristic of one of its popular products to be 0.500 ± 0.020. An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $125.00 per unit. The customer service manager is of the opinion that the product is likely to fail during the warranty period when the quality characteristic differs from the target by more than 0.020 in either direction.

Required:
To gain a better understanding of the impact of quality variation, you, the product manager, would like to know the following values in a Taguchi Quality Loss Function (QLF), L(x):

1. Cost coefficient, k (rounded to the nearest dollar).
2. Estimated loss, L(x), when the quality characteristic, x, is 0.505. (Round your answer to four decimal places.)
3. Estimated loss, L(x), when the actual quality characteristic, x, is 0.510. (Round your answer to two decimal places.)
4. The amount of change in the estimated loss (or total quality cost) when the deviation from the quality characteristic doubled. What general principle regarding Taguchi Quality Loss Functions is revealed by this example?

Question

Pandra Manufacturing specifies the quality characteristic of one of its popular products to be 0.500 ± 0.020. An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $125.00 per unit. The customer service manager is of the opinion that the product is likely to fail during the warranty period when the quality characteristic differs from the target by more than 0.020 in either direction.

Required:
To gain a better understanding of the impact of quality variation, you, the product manager, would like to know the following values in a Taguchi Quality Loss Function (QLF), L(x):

1. Cost coefficient, k (rounded to the nearest dollar).
2. Estimated loss, L(x), when the quality characteristic, x, is 0.505. (Round your answer to four decimal places.)
3. Estimated loss, L(x), when the actual quality characteristic, x, is 0.510. (Round your answer to two decimal places.)
4. The amount of change in the estimated loss (or total quality cost) when the deviation from the quality characteristic doubled. What general principle regarding Taguchi Quality Loss Functions is revealed by this example?

Quizplus · Accepted Answer

The Answer of Pandra Manufacturing specifies the quality characteristic of one of its popular products to be 0.500 ± 0.020. An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $125.00 per unit. The customer service manager is of the opinion that the product is likely to fail during the warranty period when the quality characteristic differs from the target by more than 0.020 in either direction.

Required:
To gain a better understanding of the impact of quality variation, you, the product manager, would like to know the following values in a Taguchi Quality Loss Function (QLF), L(x):

1. Cost coefficient, k (rounded to the nearest dollar).
2. Estimated loss, L(x), when the quality characteristic, x, is 0.505. (Round your answer to four decimal places.)
3. Estimated loss, L(x), when the actual quality characteristic, x, is 0.510. (Round your answer to two decimal places.)
4. The amount of change in the estimated loss (or total quality cost) when the deviation from the quality characteristic doubled. What general principle regarding Taguchi Quality Loss Functions is revealed by this example?

Pandra Manufacturing Specifies the Quality Characteristic of One of Its