North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 50,000 units from Southernstar Exploration Company for $80 per unit. North Platt can manufacture the shaft at $50 per unit. Southernstar desires the diameter of the shaft to be 1.275 cm. The diameter of the shaft must not be less than 1.25 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 1.30 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 $70. Shown below are the diameters from a sample of 80 shafts manufactured during a trial run: Diameter Number of Units Diameter 1.232 1 1.273 Number of Units 6 Number of Diameter Units 1.292 2 1.240 2 1.274 7 1.293 1 1.250 3 1.275 18 1.294 4 1.258 2 1.276 8 1.298 2 1.262 2 1.277 5 1.300 2 1.270 3 1.280 2 1.304 1 1.272 6 1.288 2 1.320 1 Required: Set up an Excel spreadsheet that uses a Taguchi quality loss function to determine: 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.) Answer is complete but not entirely correct. 1. Expected loss $ 2. Tolerance 11.98 X 0.0250 cm
North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 50,000 units from Southernstar Exploration Company for $80 per unit. North Platt can manufacture the shaft at $50 per unit. Southernstar desires the diameter of the shaft to be 1.275 cm. The diameter of the shaft must not be less than 1.25 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 1.30 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 $70. Shown below are the diameters from a sample of 80 shafts manufactured during a trial run: Diameter Number of Units Diameter 1.232 1 1.273 Number of Units 6 Number of Diameter Units 1.292 2 1.240 2 1.274 7 1.293 1 1.250 3 1.275 18 1.294 4 1.258 2 1.276 8 1.298 2 1.262 2 1.277 5 1.300 2 1.270 3 1.280 2 1.304 1 1.272 6 1.288 2 1.320 1 Required: Set up an Excel spreadsheet that uses a Taguchi quality loss function to determine: 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.) Answer is complete but not entirely correct. 1. Expected loss $ 2. Tolerance 11.98 X 0.0250 cm
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 50,000 units
from Southernstar Exploration Company for $80 per unit. North Platt can manufacture the shaft at $50 per unit. Southernstar desires
the diameter of the shaft to be 1.275 cm. The diameter of the shaft must not be less than 1.25 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 1.30 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 $70. Shown below are the diameters from a sample
of 80 shafts manufactured during a trial run:
Diameter
Number of
Units
Diameter
1.232
1
1.273
Number
of
Units
6
Number of
Diameter
Units
1.292
2
1.240
2
1.274
7
1.293
1
1.250
3
1.275
18
1.294
4
1.258
2
1.276
8
1.298
2
1.262
2
1.277
5
1.300
2
1.270
3
1.280
2
1.304
1
1.272
6
1.288
2
1.320
1
Required:
Set up an Excel spreadsheet that uses a Taguchi quality loss function to determine:
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.)
Answer is complete but not entirely correct.
1.
Expected loss
$
2.
Tolerance
11.98 X
0.0250
cm](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38489527-4900-4f65-a664-244608e2bf1b%2F50da6e7a-8f2d-4cd9-ab7c-623bf42f9c7e%2Fa48pr7e_processed.png&w=3840&q=75)
Transcribed Image Text:North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 50,000 units
from Southernstar Exploration Company for $80 per unit. North Platt can manufacture the shaft at $50 per unit. Southernstar desires
the diameter of the shaft to be 1.275 cm. The diameter of the shaft must not be less than 1.25 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 1.30 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 $70. Shown below are the diameters from a sample
of 80 shafts manufactured during a trial run:
Diameter
Number of
Units
Diameter
1.232
1
1.273
Number
of
Units
6
Number of
Diameter
Units
1.292
2
1.240
2
1.274
7
1.293
1
1.250
3
1.275
18
1.294
4
1.258
2
1.276
8
1.298
2
1.262
2
1.277
5
1.300
2
1.270
3
1.280
2
1.304
1
1.272
6
1.288
2
1.320
1
Required:
Set up an Excel spreadsheet that uses a Taguchi quality loss function to determine:
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.)
Answer is complete but not entirely correct.
1.
Expected loss
$
2.
Tolerance
11.98 X
0.0250
cm
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