A company produces a certain part whose most important dimension is 37.50 0.025 in. If the tolerance is exceeded, the customer will return the part to the manufacturer at a cost of $200 in rework and replacement expenses.
(a) Determine the constant k in the Taguchi loss function, Eq. (42.13).
(b) The company can add a finish grinding operation that will allow the tolerance to be reduced to ±0.010 in. Using the loss function from part (a) what is the value of the loss associated with this new tolerance?