An engineering company have won a contract to produce 1500 steel rods per month. A trial run was produced to establish process capability. The results were:-
The specification is 12cm +/- 0.35 cm, and the cost of rejection would be £20 per casting. Average loss should be kept below £4 per unit to avoid making a loss on the contract.
Using Taguchi Loss function, what is the variance in the system and the loss likely to be experienced?
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