A Tailor Decides to Use Taguchi's Quality Loss Function to Analyze

question 66

Essay

A tailor decides to use Taguchi's quality loss function to analyze his shirt making process. Knowing it to be parabolic in shape and of the form L(y)= k(y - t)² where t is the target, y is the actual measurement, and k is the process constant, the tailor decides to use a recent customer order to calculate his process parameters. He takes the custom shirt and measures the collar, which was requested to have a 17.5" collar but actually has a 17.75" collar. The customer notices the difference and demands a 50% reduction in the price of the shirt, which cost the tailor $45 to make. Instead of selling the shirt for $175, the tailor will reduce his price to $87.50. What is the tailor's process constant for a silk shirt?

---

Definitions:

Ratio Analysis

A quantitative analysis of information contained in a company's financial statements, used to evaluate financial health, performance, and trends.

Interpretation

Interpretation involves the process of explaining the meaning of information or data, often requiring a detailed analysis to translate complex information into more understandable terms.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets, without relying on inventory.

Debt Ratio

A financial ratio that measures the proportion of total debt to total assets, indicating the company's leverage and financial health.