Pandra Manufacturing Specifies the Quality Characteristic of One of Its $\pm$

question 11

Essay

Pandra Manufacturing specifies the quality characteristic of one of its popular products to be 0.500 $\pm$ 0.020.An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $125 per unit.The customer service manager is of the opinion that the product is likely to fail during the warranty period when the quality characteristic differs from the target by more than 0.020 in either direction.
Required: To gain a better understanding of the impact of quality variation,you,the product manager,would like to know the following values in a Taguchi loss function,L(x).
(1)Cost coefficient,k.
(2)Estimated losses,L(x),when the actual quality characteristic,x,is 0.505.
(3)Estimated losses,L(x),when the actual quality characteristic,x,is 0.510.
(4)The amount of change in the estimated losses when the deviation from the quality characteristic doubled.

---

Definitions:

Variable Cost

A cost that varies with the level of output or production, such as materials or labor costs.

Fixed Cost

A cost that does not change with the level of production or sales over a certain period, such as rent or salaries.

Plane Operating Costs

The expenses associated with operating an aircraft, including fuel, maintenance, crew, and landing fees.

Variable Cost

A cost that changes in proportion with the level of output or activity.