Suppose that the specifications for a part (in inches) are 6 inches, and that the Taguchi Loss Function is estimated to be L(x)= 8700(x-T)2.
Determine the estimated loss if the quality characteristic under study take on a value of 6.2 inches.
If You make 100 parts a day and 4 are 6.2 inches how much are you losing every 5 day work week?
A. $348, 1062
B. $1041, $34,000
C. $1360, $34,000
D. $1041, $26, 025
E. $348, $6960