Find defects at the factory rather than the customer

Assignment Help Operation Management

Reference no: EM132112068

In modern companies, it is certainly cheaper to find defects at the factory rather than the customer, since returns and shipping are expensive. But then, do you lose money by extensive testing at the factory versus the few repairs in the field? Or even comprise at Safety in Design? Toyota (uncontrolled acceleration) and GM (defective ignition switches) found out the hard way with the problems in their cars, causing huge problems with recalls and customer satisfactions. This problem explores this Japanese world view of Design, and was created by Taguchi. The tolerance of the output voltage of a certain circuit is Δ = + 10 V. The actual repair cost (A) of a repair when the circuit fails is ¥ 6000 at the customer site. The rework cost when a circuit is found defective at the factory by extensive testing is (Ar) is ¥ 50.. If the company wants to maximize its profits, it can test more extensively at the factory by testing to a tighter tolerance. Find the optimal testing -tolerance at the factory ? using Quality Loss function (QLF). HINT-L (factory)-A2 L (customer) = AR.

Reference no: EM132112068

Questions Cloud

Total passengers in this entire process are waiting : How many total passengers in this entire process are waiting, on average, at any given time?

Proper purpose of assessment in instructional design : First, describe what you see as the proper purpose of assessment in instructional design.

Ethical element that should be present in every negotiation : Throughout this week you learned about the ethical element that should be present in every negotiation.

Describe what your triple bottom line goals might look like : Describe what your triple bottom line goals might look like. How would you measure the company’s performance toward those goals?

Find defects at the factory rather than the customer : In modern companies, it is certainly cheaper to find defects at the factory rather than the customer,

Profit maximizing price and quantity for each market segment : Calculate the point price elasticity of demand at the profit maximizing price and quantity for each market segment.

Sales and marketing or with manufacturing and production : How can knowledge management systems help firms with sales and marketing or with manufacturing and production?

Committed against patron of their establishment : why wasn't Mrs. Arci held personally liable for the visious attack her partner had committed against a patron of their establishment?

Agreement to buy its actual requirements of potting soil : Pottery Plant Co. has entered into an agreement to buy its actual requirements of potting soil for six months from Green Supplies, a garden supply company.

User Account

All Pages