North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 43,000 units from Southernstar Exploration Company for $48 per unit. North Platt can manufacture the shaft at $18 per unit. Southernstar desires the diameter of the shaft to be 1.289 cm. The diameter of the shaft must not be less than 1.264 cm in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.314 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $38. Shown below are the diameters from a sample of 80 shafts manufactured during a trial run: Diameter 1.246 1.254 1.264 1.272 1.276 1.284 1.286 Number of Units 1 2 3 2 2 3 6 1. Expected loss 2. Tolerance Diameter 1.287 1.288 1.289 1.290 1.291 1.294 1.302 Number of Units 6 7 18 8 5 2 2 cm Diameter 1.306 1.307 1.308 1.312 1.314 1.318 1.334 Number of Units 2 1 4 Required: Set up an Excel spreadsheet that uses a Taguchi quality loss function to determine: 2 2 1 1 1. The expected loss (total quality cost) per unit, E[L(x)], from this process. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. The diameter tolerance that should be set for the manufacture of the shaft. (Do not round intermediate calculations. Round your answer to 4 decimal places.)

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North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 43,000 units
from Southernstar Exploration Company for $48 per unit. North Platt can manufacture the shaft at $18 per unit. Southernstar desires
the diameter of the shaft to be 1.289 cm. The diameter of the shaft must not be less than 1.264 cm in order to fit properly inside the
sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.314 cm. A defective
shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the
average cost of handling and shipping a replacement shaft will be approximately $38. Shown below are the diameters from a sample
of 80 shafts manufactured during a trial run:
Diameter
1.246
1.254
1.264
1.272
1.276
1.284
1.286
Number of
Units
1232236
Diameter
1.287
1.288
1.289
1.290
1.291
1.294
1.302
1. Expected loss
2. Tolerance
Number of
Units
6
NNU 0008
7
18
cm
5
2
2
Diameter
1.306
1.307
1.308
1.312
1.314
1.318
1.334
Required:
Set up an Excel spreadsheet that uses a Taguchi quality loss function to determine:
Number of
Units
2
1
1. The expected loss (total quality cost) per unit, EL(x)], from this process. (Do not round intermediate calculations. Round your
answer to 2 decimal places.)
2. The diameter tolerance that should be set for the manufacture of the shaft. (Do not round intermediate calculations. Round your
answer to 4 decimal places.)
Transcribed Image Text:North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 43,000 units from Southernstar Exploration Company for $48 per unit. North Platt can manufacture the shaft at $18 per unit. Southernstar desires the diameter of the shaft to be 1.289 cm. The diameter of the shaft must not be less than 1.264 cm in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.314 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $38. Shown below are the diameters from a sample of 80 shafts manufactured during a trial run: Diameter 1.246 1.254 1.264 1.272 1.276 1.284 1.286 Number of Units 1232236 Diameter 1.287 1.288 1.289 1.290 1.291 1.294 1.302 1. Expected loss 2. Tolerance Number of Units 6 NNU 0008 7 18 cm 5 2 2 Diameter 1.306 1.307 1.308 1.312 1.314 1.318 1.334 Required: Set up an Excel spreadsheet that uses a Taguchi quality loss function to determine: Number of Units 2 1 1. The expected loss (total quality cost) per unit, EL(x)], from this process. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. The diameter tolerance that should be set for the manufacture of the shaft. (Do not round intermediate calculations. Round your answer to 4 decimal places.)
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