Slipstream, Inc., makes slipcovers for furniture. If the slipcovers do not fit properly, customers are very upset. This is especially true if the slipcover is a bit too small, which can make getting the slipcovers on very difficult and leads to product returns. The company has determined a quality failure in the customer’s hands (slipcovers that do not fit) costs the company $600 each time it occurs (this is (k), the proportionally constant cost of external quality failures). The company decides to randomly test one of its slipcover lines, which makes a slipcover that should be 36 inches wide. The results of the test are given in the table below.

REQUIRED:

a. Compute the total quality loss for Slipstream, Inc., using the Taguchi loss function formula and solution approach given in the text.

b. What would you recommend to Slipstream, Inc., regarding its quality practices? Why?

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Unit Actual Observation 35 2 37 3 36.5 4 36 35 34 33.5 35 9. 36 37