Managing for Quality and Performance Excellence 10th Edition by James Evans ,William Lindsay

Exercise 49

Note: Data sets for several problems are available in the Excel workbook C07Data in the Student Companion Site for this chapter. Click on the appropriate worksheet tab as noted in the problem (e.g., Prob. 7-5, etc.) to access the data.
A team was formed to study the auto part at Partscoches described in Problem 8. While continuing to work to find the root cause of scrap, the team found a way to reduce the cost for scrapping the part to $45 per part.
a. Determine the Taguchi loss function for this situation.
b. If customer complaints peak when the parts are more than 2.20 centimeters (cm) above or below the nominal dimension, what is the loss?