Illustrate taguchi loss function

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Reference no: EM131453320

Question: Two alternative manufacturing processes, A and B, can be used to produce a certain dimension on one of the parts in an assembled product. Both processes can produce parts with an average dimension at the desired nominal value. The tolerance on the dimension is mm. The output of each process follows a normal distribution. However, the standard deviations arc different. For process A, σ = 0.12 mm; and for process B, σ = 0.07 mm. Production costs per piece for A and B are $7.00 and $12.00, respectively. If inspection and sortation are required, the cost is $0.50/pc. If a part is found to be defective, it must be scrapped at a cost equal to its production cost. The Taguchi loss function for this component is given by L(x) = 2500(x - N)2, where x = value of the dimension and N is its nominal value. Determine the average cost per piece for the two processes.

Reference no: EM131453320

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