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 believes that the product is likely to fail during the warranty period when the quality characteristic exceeds on either side of the target of 0.500 the tolerance of 0.020.

What is the amount of the estimated loss (to three decimal places) using a Taguchi quality loss function (QLF) if the actual quality characteristic, x, is 0.510?
A) $7.813.
B) $31.250.
C) $78.125.
D) $3,125.000.
E) $7,812.500.

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 believes that the product is likely to fail during the warranty period when the quality characteristic exceeds on either side of the target of 0.500 the tolerance of 0.020.

What is the amount of the estimated loss (to three decimal places) using a Taguchi quality loss function (QLF) if the actual quality characteristic, x, is 0.510?

What is the amount of the estimated loss (to three decimal places) using a Taguchi quality loss function (QLF) if the actual quality characteristic, x, is 0.510?
A) $7.813.
B) $31.250.
C) $78.125.
D) $3,125.000. 
E) $7,812.500.

Quizplus · Accepted Answer

The Taguchi quality loss function is L(x) = k(x - T)^2, where k is the loss coefficient, x is the actual quality characteristic, and T is the target value. The tolerance is 0.020, so the loss at the tolerance limit is $125.00. Therefore, k = $125.00 / (0.020)^2 = $312,500. The actual quality characteristic is 0.510, so the loss is L(0.510) = $312,500 * (0.510 - 0.500)^2 = $31.250.

Pandra Manufacturing Specifies the Quality Characteristic of One of Its