1. Calculate the loss for each unit. If required, round your answers to the nearest cent. $_______ Per Unit Calculate the average loss for the sample of five. $______ 2. Using the average loss, calculate the hidden quality costs for the first quarter.
Taguchi Loss Function
Panguitch Company manufactures a component for tablet computers. Weight and durability of the component are the two most important quality characteristics for the tablet manufacturers. With respect to the weight dimension, the component has a target value of 100 grams. Specification limits are 100 grams, plus or minus five grams. Products produced at the lower specification limit of 95 grams lose $20. A sample of five units produced the following weight measures:
| Unit No. | Measured Weight |
| 1 | 100 |
| 2 | 105 |
| 3 | 110 |
| 4 | 90 |
| 5 | 85 |
During the first quarter, 100,000 units were produced.
Required:
1. Calculate the loss for each unit. If required, round your answers to the nearest cent.
$_______ Per Unit
Calculate the average loss for the sample of five.
$______
2. Using the average loss, calculate the hidden quality costs for the first quarter.
$_________
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