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9. A team was formed to study the auto part at P­­artscoches described in Proble

ID: 390791 • Letter: 9

Question

9. A team was formed to study the auto part at P­­artscoches described in Problem 8 (given below). While continuing to work to find the root cause of scrap, the team found a way to reduce the cost for scrapping the part to $45 per part.

[Problem 8: A specification for the length of an auto part at Partscoches, Inc. is 15.0 ± 2.75 centimeters. It cost $65 to scrap a part.]

            a. Determine the Taguchi loss function for this situation.

b. If customer complaints peak when the parts are more than 2.20 centimeters above or below the nominal dimension, what is the loss?

11. An electronic component at Ampcomp has a specification of 100 ± 0.4 ohms. Scrapping the component results in a $81 loss.

            a. What is the value of k in the Taguchi loss function?

b. If the process at Ampcomp averages 99.75 ohms with a standard deviation of 0.2 ohm, what is the expected loss per unit?

13. A computer chip designed by the MicroKeeb Co. has a specification for the distance between two adjacent pins of 2.000 ± 0.002 mm. The loss due to a defective chip is $4. A sample of 25 chips was drawn from the production process and the results, in millimeters, can be found in the worksheet tab Prob. 7-13 in the Excel file C07Data file.

            a. Compute the value of k in the Taguchi loss function.

            b. What is the expected loss from this process based on the sample data?

15. At Elproparts Manufacturers’ integrated circuit business, managers gathered data from a customer focus group and found that any output voltage that exceeds 60 ± 3.5 volts was unacceptable to the customer. Exceeding these limits results in an estimated loss of $90. However, the manufacturer can still adjust the voltage in the plant using a quick diagnostic test that costs $3.75.

            a. Determine the Taguchi loss function.

b. Suppose the nominal specification remains at 60 volts. At what tolerance should the integrated circuit be manufactured?

17. The average time to handle a call in the CallNowait call processing center has a specification of 5.9 ± 1.15 minutes. The loss due to a mishandled call is $15. A sample of 25 calls was drawn from the process and the results, in minutes, can be found in C07Data file for problem 7-17.

            a. Compute the value of k in the Taguchi loss function.

            b. What is the expected loss from this process based on the sample data?

Explanation / Answer

9.

Mean, m = 15

Tolerance, T = 2.75

Loss per unit, L = $ 45

Taguchi loss function constant, K = L/T2 = 45/2.752 = 5.95

b) Loss = 5.95*2.2^2 = $ 28.8