Question

Oslo Company's target quality characteristic, T, for one of its key components is set at 82. Using the Taguchi Quality Loss Function (QLF) the company has determined the cost coefficient, k, to be $6,000. What is the estimated loss, L(x), if the value of the quality characteristic, x, is 85

Answer 1

The estimated loss is $5,400 if the value of the quality characteristic,x is 85.

Explanation:

We are given the following in the question:

Target value,T = 82

Cost coefficient, k = $6,000

x = 85

The Taguchi Quality Loss Function (QLF) is given by:

`L(x) = k(x -T)^2`

where L(x) is the loss, k is the cost coefficient, T is the target value or the mean value.

We have to estimate the loss if the value of the quality characteristic is 85.

We put x = 85

`L(85) = 6000(85 -82)^2\\L(85) =54000`

Thus, the estimated loss is $5,400 if the value of the quality characteristic,x is 85.