Taguchi Loss Function Analysis Flextronchip, an OEM manufacturer, has a fifth-generation c...

Taguchi Loss Function Analysis Flextronchip, an OEM manufacturer, has a fifth-generation chip for cell phones, with chip specification of 0.2 ± 0.0002 mm for the distance between two adjacent pins. The loss due to a defective chip has been estimated as $20.

Required

1. Compute the value of k, the cost coefficient, in the Taguchi loss function.

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2. Assume that the quality control manager takes a sample of 100 chips from the production process. The results are as follows:

a. Calculate the estimated quality loss for each of the observed measurements.

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b. Calculate the expected (i.e., average) loss for the production process as a whole.

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3. Using the data from (2) above:

a. Determine the variance in the measured distance between two pins.

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b. Calculate the expected loss of the process using the calculated variance, per the method presented by Albrecht and Roth, “The Measurement of Quality Costs: An Alternative Paradigm,” Accounting Horizons (June 1992), pp. 15–27.