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

Exercise 34

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.
At Elproparts Manufacturers' integrated circuit business, managers gathered data from a customer focus group and found that any output voltage that exceeds 60 ± 3.5 volts was unacceptable to the customer. Exceeding these limits results in an estimated loss of $90. However, the manufacturer can still adjust the voltage in the plant using a quick diagnostic test that costs $3.75.
a. Determine the Taguchi loss function.
b. Suppose the nominal specification remains at 60 volts. At what tolerance should the integrated circuit be manufactured?