Steel Inc. specializes in manufacturing ship doors. The blueprint specification for the thickness of a high-demand model calls for 0.90 ± 0.05 inch. The estimated cost to the firm is $800 to scrap a part that is outside of specification (i.e., for each unit where the thickness exceeds 0.95 inches or is less than 0.85 inches.). The thickness measure, x, for the unit just completed is 0.87.
Required:
1. Calculate (to the nearest dollar) the value of k, the cost coefficient in the Taguchi loss function.
2. Calculate the estimated quality loss, L(x), for x = 0.87; round your answer to the nearest dollar.

Question

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The Answer of Steel Inc. specializes in manufacturing ship doors. The blueprint specification for the thickness of a high-demand model calls for 0.90 ± 0.05 inch. The estimated cost to the firm is $800 to scrap a part that is outside of specification (i.e., for each unit where the thickness exceeds 0.95 inches or is less than 0.85 inches.). The thickness measure, x, for the unit just completed is 0.87.
Required:
1. Calculate (to the nearest dollar) the value of k, the cost coefficient in the Taguchi loss function.
2. Calculate the estimated quality loss, L(x), for x = 0.87; round your answer to the nearest dollar.

Steel Inc Specializes in Manufacturing Ship Doors