Question

3. Upper bike price is $4600, middle bikes price is 10,000. Describe which is the best value for you as a student and why. Identify the critical path on the FAST diagram.

4. Genichi Taguchi defined the taguchi loss Function: Explain what the Taguchi Loss Function means for both the consumer and Manufacturer

Answer 1

3.

4. In layman terms, the Taguchi Loss Function is a way to show how each non-perfect part produced, results in a loss for the company. Deming states that it shows

"a minimal loss at the nominal value, and an ever-increasing loss with departure either way from the nominal value."

A technical definition is: A parabolic representation that estimates the quality loss, expressed monetarily, that results when quality characteristics deviate from the target values. The cost of this deviation increases quadratically as the characteristic moves farther from the target value.

For a manufacturer/business, the TLF is useful in the following way: When a manufacturer decides to optimize a particular process, or when optimization is already in progress, it’s often easy to lose focus and strive for lowering deviation from the target as an end goal of its own. But whenever we are talking about business, the most important and the most fundamental metric is always the profit. In that sense, the Taguchi Loss Function can be extremely valuable, as it is a tool that can transform deviation from target to a value with a financial representation, which affects the bottom line directly.

On the other hand, the consumer a loss of quality the moment product specification deviates from the 'target value'. This 'loss' is depicted by a quality loss function and it follows a parabolic curve mathematically given by L = k(y–m)², where m is the theoretical 'target value' or 'mean value' and y is the actual size of the product, k is a constant and L is the loss.