A Quality Characteristic Has a Manufacturing Specification (In Cm) of 0.200

Multiple Choice

A quality characteristic has a manufacturing specification (in cm) of 0.200 ± 0.05. Historical data indicate that if the quality characteristic takes on values larger than 0.25 cm or smaller than 0.15 cm, the product fails and a cost of $75 is incurred. Given the Taguchi loss function that was computed and actual process performance of this quality characteristic of 0.135, what is the economic loss per part?

A) More than $50 but less than or equal to $100
B) More than $100 but less than or equal to $200
C) More than $200 but less than or equal to $300
D) More than $300