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: Number of Diameter Units Diameter 1.232 1 1.273 Number of Units 6 Number of Diameter Units 1.292 1.240 2 1.274 7 1.293 1.250 3 1.275 18 1.294 1.258 2 1.276 8 1.298 1.262 1.270 1.272 236 1.277 1.280 1.288 522 1.300 1.304 1.320 1142211 2 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.) 1. Expected loss 2. Tolerance ст
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: Number of Diameter Units Diameter 1.232 1 1.273 Number of Units 6 Number of Diameter Units 1.292 1.240 2 1.274 7 1.293 1.250 3 1.275 18 1.294 1.258 2 1.276 8 1.298 1.262 1.270 1.272 236 1.277 1.280 1.288 522 1.300 1.304 1.320 1142211 2 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.) 1. Expected loss 2. Tolerance ст
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
g.0
![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:
Number of
Diameter
Units
Diameter
1.232
1
1.273
Number
of
Units
6
Number of
Diameter
Units
1.292
1.240
2
1.274
7
1.293
1.250
3
1.275
18
1.294
1.258
2
1.276
8
1.298
1.262
1.270
1.272
236
1.277
1.280
1.288
522
1.300
1.304
1.320
1142211
2
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.)
1. Expected loss
2. Tolerance
ст](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc322ac55-7cbe-45a4-9f71-5bfd9b64ac47%2F165dc94f-f8b5-49ab-b873-ba9db9307dc5%2F6lkdum6_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:
Number of
Diameter
Units
Diameter
1.232
1
1.273
Number
of
Units
6
Number of
Diameter
Units
1.292
1.240
2
1.274
7
1.293
1.250
3
1.275
18
1.294
1.258
2
1.276
8
1.298
1.262
1.270
1.272
236
1.277
1.280
1.288
522
1.300
1.304
1.320
1142211
2
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.)
1. Expected loss
2. Tolerance
ст
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education