P = 0Q = 2 5) Taguchi Loss Function: A company produces a certain part whose most
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P = 0Q = 2
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5) Taguchi Loss Function: A company produces a certain part whose most important dimension is 22.50± (0.020 + (P/1000)) cm. If the tolerance is exceeded, the customer will return the part to the manufacturer at a cost of A$200 + PQ in rework and replacement expenses. A. Determine the constant k in the Taguchi loss function. B. The company can add a finish grinding operation that will allow the tolerance to be reduced to ±0.010 + (Q/1000) cm. Using the loss function from part (A) what is the value of the loss associated with this new tolerance? C. The additional operation in the preceding problem will add A$3.00 + (Q/10) to the current cost of the part, which is A$12.50 + (P/3). If the rate of returns from the customer at the tolerance of ± (0.020 + (P/1000)) cm is (3+ (Q/10) ) %, and it is expected to drop to zero returns using the new tolerance, should the company add the finish grinding operation to the manufacturing sequence for the part? 5) Taguchi Loss Function: A company produces a certain part whose most important dimension is 22.50± (0.020 + (P/1000)) cm. If the tolerance is exceeded, the customer will return the part to the manufacturer at a cost of A$200 + PQ in rework and replacement expenses. A. Determine the constant k in the Taguchi loss function. B. The company can add a finish grinding operation that will allow the tolerance to be reduced to ±0.010 + (Q/1000) cm. Using the loss function from part (A) what is the value of the loss associated with this new tolerance? C. The additional operation in the preceding problem will add A$3.00 + (Q/10) to the current cost of the part, which is A$12.50 + (P/3). If the rate of returns from the customer at the tolerance of ± (0.020 + (P/1000)) cm is (3+ (Q/10) ) %, and it is expected to drop to zero returns using the new tolerance, should the company add the finish grinding operation to the manufacturing sequence for the part?
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