Determine the taguchi loss function

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Reference no: EM132217150

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?

Reference no: EM132217150

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