The Desired Target Quality Characteristic of a Product of Hanson

question 57

Multiple Choice

The desired target quality characteristic of a product of Hanson Component Manufacturing is 0.5. The customer-service manager knows that customers are likely to complain when the specification is off the desired quality characteristic by more than 0.025. On average, it costs the firm $2,000 to handle and resolve each complaint. The production manager of the Hanson Manufacturing suggests that the company test the product more thoroughly before shipping. The cost of additional testing and adjustments is estimated at $30.00 per unit.

For Hanson, what is the value of k, the cost coefficient in the Taguchi Quality Loss Function (QLF) , rounded to the nearest dollar?

• A) $5.
• B) $2,000.
• C) $80,000.
• D) $1,600,000.
• E) $3,200,000.

Understand the concept and prevalence of contingency workers within the workforce.

Recognize the variety of alternative work arrangements and their importance in modern organizations.

Identify the benefits and challenges associated with alternative work arrangements such as compressed workweeks, telecommuting, and flexible working hours.

Grasp the relationship between alternative work arrangements and employee productivity, satisfaction, and work-life balance.

---

Definitions:

Activity Cost Pools

Groupings of individual costs associated with particular activities, used in activity-based costing to allocate costs more precisely.

Cost Analysis Report

A detailed examination of cost elements and their impact on the overall expenses of a business, often used to inform financial decisions and strategies.

Time-Based Activity-Based Costing

A costing method that assigns costs based on the amount of time activities take to complete, enhancing the accuracy of product costing.

Practical Capacity

The maximum amount of work that could realistically be achieved in a given period under normal working conditions.