A product's quality characteristic has a specification (in inches)of 0.200 ± 0.020.If the value of the quality characteristic exceeds 0.200 by the tolerance of 0.020 on either side,the product will require a repair of $150.The Taguchi loss function for this example is given by:
A)L(x)= 60(x-T)²
B)L(x)= 150(x-T)
C)L(x)= 375,000(x-T)²
D)L(x)= 30(x-T)²

Question

Quizplus · Accepted Answer

The Taguchi loss function is calculated using the formula L(x) = k(x-T)², where k is the cost of repair divided by the square of the tolerance. Here, k = $150 / (0.020)² = 375,000.

A Product's Quality Characteristic Has a Specification (In Inches)of 0