A computer chip is designed so that the distance between two adjacent pins has a specification of

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A computer chip is designed so that the distance between two adjacent pins has a specification of 2.000 +/- .002 millimeters (mm). The loss due to a defective chip is $3.00. A sample of 25 chips was drawn from the production process and is on the attached excel spread sheet.
a. Compute the value of k in the Taguchi Loss Function
b. What is the expected loss from this process based on the sample?
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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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