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Suppose that a metal rod is supposed to be cut 31.6mm in length. The upper spec limit is set at 32.4mm, and the lower spec limit set at 30.8mm. A metal rod that is out of spec must be scrapped at a cost of $26.00. The company uses the Taguchi Quality Loss Function to estimate quality losts. Suppose that a sample of 4 units was taken, and the rod measurements were: 31.5, 32.3, 31.3, and 31.1mm, respectively.
a) Bob believes that the Taguchi Quality Loss Function is an appropriate measure for quality costs. What is the Taguchi Quality Cost of that sample of 4 units?
b) Alternatively, Jerry likes the Taguchi Quality Loss Function, but he belives that a linear function would be better represent the cost of quality. Specifically, Jerry prefers a loss function of the form: L=T x |D|, where L, D, and T have the same definitions as in the Taguchi model. What would be the quality cost of sample of 4 units using Jerry's model?
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Also there are 30 units of B and 20 units of D now on hand. lead times for all items are a function of quality
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