The Ops Manager of a small company producing a particular high-precision component is concerned about the variability
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Question:
A manager can use the Taguchi Loss function and the related quantification of poor quality for a number of analyses.
PROCESS SELECTION: How to assess the current process capability? Is it acceptable?
PROCESS SELECTION and CAPACITY PLANNING: What is the annual cost of the current process due to process capability (quality loss)?
PROCESS IMPROVEMENT DECISION: The expected loss for any unit produced at the tolerance limits (design specs) is estimated at $3.50, and the annual production is 200,000 units. If the company management were to pursue a six-sigma program how much should the company be willing to invest in variability improvements?
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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