Taguchi explained the basis for his loss function by providing an example from the nursery industry in
Question:
Taguchi explained the basis for his loss function by providing an example from the nursery industry in Japan. Greenhouses typically are covered with plastic sheeting that permits the cor- rect amount of sunlight to penetrate. If manufacturers of plastic sheeting deviate from target specifications, quality losses occur. For example, if the material is too thick, insufficient light will penetrate. If the material is too thin, it lacks sufficient strength to withstand inclement weather and will tear. Assume the target specification is 50 microns (a micron is 1/1000 of a millimeter) and the dollar value of loss associated with variation is $200 [(k) = $200].
Required A. Calculate the quality losses at the following points: 1. 30 microns 2. 40 microns 3. 50 microns 4. 60 microns 5. 70 microns B. Prepare a plot of the quality losses calculated in requirement (A). C. Explain the results of your calculations and plot. D. How might management use information from your plot to support decisions about quality improvement?
Step by Step Answer:
Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill