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A quality characteristic has a design specification (in cm) of 0.200 ± 0.020. If the actual process value of the quality characteristic is at the boundary of the tolerance on either side, the product will require a repair of $30. Find the value of k , and state the Taguchi loss function. What is the economic loss associated with x=0.205 ?

Lx = K(x-T) 2
30 = K (.02) 2
K = 75000
Loss function Lx = K(x-T) 2
Lx = 75000(.205 – .2)2
= 1.875 $
 
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