Suppose that the design specifications for hydraulic cylinder are 10.00 ± 0.10 centimeters, and that the Taguchi loss function is estimated to be L(x) = 2,400 (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.