Uses the quality loss function to estimate quality costs

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Suppose that a metal rod is supposed to be cut 29.5 mm in length. The upper spec limit is set at 30.0 mm, and the lower spec limit set at 29.0 mm. A metal rod that is out of spec must be discarded at a cost of $20.00. The company uses the Taguchi Quality Loss Function (L=TD2) to estimate quality costs. Suppose that a sample of 4 units was taken, and the rod measurements were: 29.6, 29.8, 29.1, and 30.1 mm, respectively. What is the Taguchi Quality Cost of that sample of 4 units?

Reference no: EM131228491

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