Managing for Quality and Performance Excellence 10th Edition by James Evans ,William Lindsay

Exercise 33

Note: Data sets for several problems are available in the Excel workbook C07Data in the Student Companion Site for this chapter. Click on the appropriate worksheet tab as noted in the problem (e.g., Prob. 7-5, etc.) to access the data.
A team was formed to study the refrigerator part at Lafrigeradora, Inc. described in Problem 6. While continuing to work to find the root cause of scrap, they found a way to reduce the scrap cost to $25 per part.
a. Determine the Taguchi loss function for this situation.
b. If the process deviation from target can be reduced to 0.027 cm, what is the Taguchi loss?