Determine the estimated loss for a production order if the


Suppose that the design specifications for a hydraulic cylinder are 10.00 (plus or minus) 0.10 centimeters and that the Taguchi loss function is estimated to be L(x)=1,400 (x -T)^2.

a. Determine the estimated loss for a production order if the quality characteristic under study takes on a value of 10.04 and 100 parts are produced.

b. Assume the production process is recalibrated weekly, and a new sample of cylinders after recalibration reveals an x-bar of 9.789. What action, if any, is need in this situation? Explain.

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Operation Management: Determine the estimated loss for a production order if the
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