Question

The DFSS team decided that achieving the exact diameter was important to the customers, so they evaluated the effect of variability using a Taguchi loss function. They determined that the cost to produce a wheel whose diameter is 25 would be $1. The cost of repairing a wheel whose diameter is 26 would be $2. What is the equation for the Taguchi loss function?

Answer 1

Let’s assume the target value and the desired diameter of the wheel by customer is 25

Cost of repairing a wheel of diameter 26 is $2 (repairing it back to diameter of 25)

Taguchi’s loss function for one piece of product (Since the batch size is not given) is:

Loss in money = Quality loss coefficient * (quality characteristics – target value) ^2

Here,

Loss in money = $2

Quality loss coefficient = K       (At this value, 50% of customers view the product as defective)

Quality characteristic = 26

Target value = 25

Hence, by putting values in the above formula, the equation for Taguchi loss function equation:

2 = K * (26 – 25) ^ 2                            (Answer)

On calculation we get K from above:

K = 2

At K=2, 50% of customers view the product as defective