Taguchi Quality Loss Function (QLF) Analysis Flextronchip, an OEM manufacturer, has a fifth-generation chip for cell phones, with chip specification of 0.2 ± 0.0002 mm for the distance between two adjacent pins. The loss due to a defective chip has been estimated as $20.
Required
1. Compute (to the nearest whole dollar) the value of k, the cost coefficient in the Taguchi quality loss function (QLF), L(x) = k(x − T) 2 .
2. Assume that the quality control manager takes a sample of 100 chips from the production process. The results are as follows: a. Use the appropriate Taguchi quality loss function, L(x), to calculate the estimated quality loss (to 2 decimal places) for each of the observed measurements. b. Calculate the expected (i.e., average) loss per unit (to 2 decimal places) for the production process as a whole. 3. Using the data from (requirement 2) above: a. Determine the square of the deviation of the mean of the actual x-values from the targeted value, T. (Note: In the text, this requested amount is denoted D2 .) Round your answer to 12 decimal places. b. Determine, using the formula given in footnote 11, the variance (σ2 ) of the observed values of the quality characteristic, x, around the mean value of x, denoted x-bar. Round your answer to 12 decimal places. c. Using the formula provided by Albright and Roth (1992) and the results from requirements 3a and 3b above, calculate E(L(x)), that is, the expected (average) per-unit loss of the process (rounded to 2 decimal places). Source: Albright and Roth, “The Measurement of Quality Costs: An Alternative Paradigm,” Accounting Horizons, June 1992), pp. 15–27. (See Exhibit 17.7 and footnote 11.)
