Answer Happy

North Platt Machinery Company manufactures a shaft that must fit
inside a sleeve. The firm has just received an order of 47,000
units from Southernstar Exploration Company for $38 per unit. North
Platt can manufacture the shaft at $8 per unit. Southernstar
desires the diameter of the shaft to be 1.293 cm. The diameter of
the shaft must not be less than 1.268 cm in order to fit properly
inside the sleeve. To be able to insert the shaft into a sleeve
without the use of force, the diameter cannot be larger than 1.318
cm. A defective shaft is discarded and a replacement has to be
shipped via express freight to locations around the world. North
Platt estimates that the average cost of handling and shipping a
replacement shaft will be approximately $28. Shown below are the
diameters from a sample of 80 shafts manufactured during a trial
run:
Required:
Set up an Excel spreadsheet that uses a Taguchi quality loss
function to determine:
1. The expected loss (total quality cost) per
unit, E[L(x)], from this
process. (Do not round intermediate calculations.
Round your answer to 2 decimal places.)
2. The diameter tolerance that should be set for the manufacture
of the shaft. (Do not round intermediate calculations.
Round your answer to 4 decimal places.)