Quality Loss Function Solution
L = D2C = (X - Target)2C
- L = Loss ($); D = Deviation; C = Cost
4.00 = (25.25 - 25.00)2C
- Item scrapped if greater than 25.25 (USL = 25.00 + 0.25) with a cost of $4.00
C = 4.00 / (25.25 - 25.00)2 = 64
L = D2 • 64 = (X - 25.00)264
- Enter various X values to obtain L & plot