Exercise 2: Taguchi Loss Function (1) SKF's customer requires stainless steel bearings to be 25 mm in diameter (the nominal value) and has indicated a tolerance of 5 mm above or below 25 mm as acceptable. Bearings above the USL of 30 mm and below the LSL of 20 mm are scrapped at a cost of $1.00 per bearing. What is the Taguchi Loss Function of this process? (2) SKF's customer requires stainless steel bearings to be 25 mm in diameter (the nominal value) and has indicated a tolerance of 5 mm above or below 25 mm as acceptable. The Taguchi constant kis 0.4. What is the scrap cost per bearing? (1) (2)