Show your work, and please complete it on a separate sheet of paper 1. (6 points

Question

Show your work, and please complete it on a separate sheet of paper 1. (6 points) Suppose that a metal rod is supposed to be cut 74.0 mm. in length. The upper spec limit is set at 78.5 mm., and the lower spec limit set at 69.5 mm. A metal rod that is out of spec must be scrapped at a cost of $42.00. The company uses the Taguchi Quality Loss Function to estimate quality costs. Suppose that a sample of 5 units was taken, and the rod measurements were: 75.6,78.2, 68.7, 71.0 and 73.6 mm., respectively What is the total Taguchi Quality Cost of that sample of 5 units? (You can round all costs to the nearest penny.)

Explanation / Answer

Required metal rod length = 74 mm

Upper spec limit = 78.5 mm

Lower spec limit = 69.5 mm

Scrap cost, S = $42.00

Out of the 5 samples, only one sample out of 5 is out of specification limit, i.e. sample of length 68.7 mm is below lower specification limit and hence it must be scrapped.

Percentage of scrap material, W = 1/5 = 20% or 0.2

Taguchi Quality Cost = W x S

= 0.2 x 42 = $8.40

Hence Taguchi Quality Cost is $8.40

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