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Week 6 Discussion 2 - imperfect products Again relating to...

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The Taguchi Loss Function estimates the quality lost when a defective part (or non-perfect part) is produced. Through an example on the article listed below, it explained that too much variation even within the allotted specifications, my lead to a part not assembling well. Therefore the part may end up being scrapped and the cost to produce it sunk. This implies that the Taguchi Loss Function can be used to calculate the amount of sunk costs at different levels of variation in order to try to eliminate as much loss as possible being created by
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Unformatted text preview: imperfect products. Again relating to the example provided the company needed to decide if replacing a worn tool was cost effective. They tried to produce the product at the higher end of the specs, so as it wore it would near the lower end of the specs and untimely the company would get to use the tool a little longer. However by using the TLF, they may find that their loss incurred by these variations may be more than it would cost to simply replace the tool more often....
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