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Tolerance Design  593


                                 Quality loss








                                    A 0



                                    A


                 T –   0  T –        T        T +      T +   0
           Figure 16.8 Quality loss function, customer tolerance, and producer tolerance.




           where   0 is the customer tolerance limit and A 0 is the cost incurred to
           the customer when the requirement level y is at the boundary of the
           customer tolerance limit. Taguchi reasons that if the design can be
           repaired or fixed before shipping to customers at a lower cost, say, A
           and A   A 0 , then the producer tolerance  , which is the internal toler-
           ance limit for shipping inspection, should be set at a narrower level
           than the customer tolerance limits. Taguchi proposes that the specific
           producer tolerance limit   should be set according to the quality loss
           function. Specifically, he thinks that at producer tolerance, the quality
           loss should break even with the internal repair cost. Thus, when y
           T    or y   T   , by Eq. (16.29), the quality loss


                                             A 0
                                     L(y)         2
                                              2
                                               0
           Then, setting the quality loss L(y) equal to the repair cost A, we obtain

                                            A 0
                                      A          2
                                             2
                                              0
           Therefore, the producer tolerance limit   can be computed by
                                    	            0
                                      A
                                                                      (16.30)
                                                        0
                                          0
                                                A 	 0
                                                A
                                     A 0
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