Question

Assume the specifications for a television remote control part (in inches) are 5.00 ± 0.15, and the Taguchi loss function is estimated to be L(x) = 4,900(x – T)2. Determine the estimated loss per part if the quality characteristic (i.e., actual process performance) under study takes on a value of 4.87 inches. Use the Excel template Taguchi to find the total economic loss if a production order for 47,000 remotes is recalled due to this part being so close to

Answer 1

The estimated loss per part is $82.53, and the total economic loss for the production order of 47,000 remotes amounts to $3,878,091.

Explanation:

The estimated loss per part can be calculated using the Taguchi loss function formula, which evaluates the economic loss based on the deviation from the target specification. For a quality characteristic of 4.87 inches in a specification range of 5.00 ± 0.15 inches, substituting the values into the formula gives a loss of $82.53 per part. To determine the total economic loss for the production order of 47,000 remotes, this loss per part is multiplied by the number of units recalled, resulting in a total loss of $3,878,091.

The Taguchi loss function quantifies the cost associated with deviations from the desired specification. In this case, the loss per part is a measure of how far the actual performance deviates from the target value, reflecting the impact on the product's quality and associated costs. The calculation considers the squared deviation, emphasizing the increased cost of larger deviations from the target.

This method helps in evaluating the economic consequences of quality variations, aiding decision-making in manufacturing processes to minimize losses and improve overall quality. Understanding the potential financial impact of deviations from specifications guides efforts to enhance production processes and maintain quality standards, thereby reducing economic losses.