Question

More explaination to understand????

You're managing an aluminum coating process and the specifications call for 25 +/- .3 grams of anodizing coating for each
fabricated component. A sample of 50 components were drawn with the coating results, in grams, shown below. Too much coating
is as detrimental to the project as too little and you've calculated that it costs $60.00 to scrap a defective coating. The results below
are normally distributed.
25.7660	24.4550	25.5250	26.0340	24.6960
23.5730	25.0160	25.5160	25.1240	24.7520
25.0420	25.8750	25.8910	25.3810	24.6040
24.7770	25.9860	24.5410	24.6470	24.8460
25.1670	24.3680	25.5090	24.7310	25.4070
24.1200	25.2890	24.5230	25.1860	25.0290
24.6690	24.8810	25.2620	25.4380	25.2180
24.8250	25.3010	24.8680	25.1980	25.4550
24.7630	24.9140	25.0670	25.6620	25.2270
25.5640	25.5930	24.8110	25.3290	25.8350
a. What is the value of K in the Taguchi Loss function?
b. What is the expected loss, per unit, of this sample

Answer 1

ANSWER:

The Tagushi Loss theorem states that developed of a poor quality product results in a loss for the organization.

• It describes the importance of quality and the need for continuous improvement. He focuses on the fact how quality cannot fall suddenly and private and social costs don’t add to suddenly on non-conformance to standard specifications.

• The losses to the manufacturer are primarily because they deviate from the target quality or the best quality specified for the product.

• He highlights that the private loss or social loss is zero when the best quality value or the target value is maintained. Any deviation in the quality standards of the product specifications from the target value will add to the losses. Further, his theorem focus on three parameters which state that:

• The target value should be closest to the median to eliminate losses.

• The best quality standard is zero whereby the variation in specification zero.

• The value of best quality specification is infinity.

• The Deming’s quality philosophy specifies that following certain principles of management can improve the quality of products, which will automatically lead to a reduction in costs. Further reduction in cost would lead to a lower attrition rate, reduction in wastages, reduced litigation and an increase in customer loyalty.

• He focused on two parameters, which are: The organizations should focus on the quality. When quality improves the cost will fall over a period of time.

• He also states that if the focus were on the costs the quality standards would fall.

• The Tagushi Loss theorem supports Deming Quality policy as follows:

• Deming quality policy and Tagushi loss theorem focus on continuous improvement to reduce costs and improve customer satisfaction levels.

• Deming emphasized improving and maintaining quality same as the philosophy of the Tagushi Loss theorem.

• Deming quality policy highlights and focuses on reducing waste, matching quality standards and improving customer loyalty.

• The Tagushi theorem also focuses on meeting set standards and to reduce losses and improve customer satisfaction levels.

• Joseph Juran discusses the importance of human resource in improving quality standards. He states that organizations should focus on education and training of the manpower to improve quality.

• Secondly, the need to focus on the root cause of the quality management which he felt was resistance to change and basically human relation problem. His philosophy focuses on quality planning, controls, and continuous improvement.

• Phillip Crosby emphasizes on doing it right the first time. His theory of quality is based on 4 absolutes which include conforming to quality standards, putting inadequate quality control systems, ensuring zero defects; lack of conforming to standards would increase the costs.

• All theories propound that lack of quality would lead to an increase in overall costs and fall in customers satisfaction level. Al theories focus on improving quality standards and ensure zero defects. This would lead to an overall increase in customer’s satisfaction levels. The need for continuous improvement is also primary.