The Desired Target Quality Characteristic of a Product of Hanson

question 55

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.

Given the company's cost coefficient, k, what should the tolerance be (to five decimal places) before conducting additional testing and adjusting at the factory?

• A) 0.00001.
• B) 0.00306.
• C) 0.00063.
• D) 0.02500.
• E) 0.25000.

---

Definitions:

Management

Management involves the planning, organizing, leading, and controlling of an organization's resources to achieve specified goals efficiently and effectively.

Music

An art form and cultural activity that combines sounds and often rhythms in a structured manner to express ideas or emotions.

Sports

Competitive physical activities or games which, through casual or organized participation, aim to use, maintain, or improve physical ability and skills.

Physiological Needs

Physiological needs are the basic physical requirements essential for human survival, including air, water, food, shelter, sleep, and clothing.