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Question: Suppose that a metal rod is supposed to be cut 51.8 mm in length. The upper spec limit is set at 52.9mm and the lower spec limit set at 50.7mm. A metal rod that is out of spec must be scrapped at a cost of $36.00. The company uses the Taguchi Quality Loss Function to estimate quality costs Suppose that a sample of 5 units was taken, and the rod measurements were: 51.5, 52.3, 50.5, 51.4 and 51.9 mm respectivley. What is the total Taguchi Quality of Cost of that sample of 5 units? Please show work and values so I can understand where the numbers are coming from.

Operation Management, Management Studies

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