These three problems are based on one business situation. The three-problem series links quality costs, the Taguchi loss function, and statistical process control. Refer to P9-11 for a description of AutoSafe's manufacturing process. Managers at AutoSafe collected twenty data points representing a batch of windshield XXR531. These data follow. The target thickness specification for product XXR531 is 2.5 millimeters. Management has es- timated the cost of variability, or (k), in the Taguchi loss function at $12,000.

\section*{Required}
A. Calculate the quality losses associated with process variability.
B. Will these losses appear in the accounting general ledger? Explain.
C. What types of costs are included in the Taguchi loss function?
D. Does the Taguchi function describe failure, prevention, or appraisal cost? Explain.

Transcribed Image Text:

1 2.60 6 2.60 11 2.65 16 2.50 2 2.55 7 2.55 12 2.65 17 2.55 3 2.40 8 2.55 13 2.50 18 3.10 4 2.40 9 2.60 14 2.55 19 2.45 5 2.50 10 2.55 15 2.45 20 2.60