Ladder Manufacturing specifies the quality characteristic of one of its popular products to be 0.400" $\pm$0.010.An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $100 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 0.400,by the tolerance of 0.010.What is the amount of the estimated loss,L(x),using a Taguchi loss function,if the actual quality characteristic,x,is 0.41?
A)$25.
B)$100.
C)$10,000.
D)$4,000,000.
E)$4,100,000.

Question

Quizplus · Accepted Answer

Using the Taguchi loss function, the estimated loss can be calculated as:
L(x) = k * (x - T)^2 = k * (0.41 - 0.400)^2 = k * 0.0004
where k is the constant cost of a unit outside the target specification.

Since the quality characteristic exceeds the target on one side by 0.010, the loss would be:
L(0.41) = k * 0.0004 = $100

Therefore, the estimated loss in this case would be $100.

Ladder Manufacturing Specifies the Quality Characteristic of One of Its ±\pm±

Ladder Manufacturing Specifies the Quality Characteristic of One of Its $\pm$