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Ladder Manufacturing Specifies the Quality Characteristic of One of Its

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Ladder Manufacturing specifies the quality characteristic of one of its popular products to be 0.400" ± 0.010. An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $100.00 per unit. The customer service manager believes that the product is likely to fail during the warranty period when the quality characteristic exceeds on either side of the target of 0.400, by the tolerance of 0.010.

What is the cost coefficient, k, for the Taguchi Quality Loss Function (QLF) associated with this situation? Round answer to nearest dollar.


Definitions:

Application Form

A document that an individual fills out to provide personal and professional information when applying for a job, service, or activity.

Reliability

A selection device’s ability to yield consistent results over repeated measures; also, internal consistency of a device or measure.

Job-relevant Criteria

Standards or qualifications used to assess whether an individual is suitable for a particular job, based on the specific requirements of the position.

Weighted Application

A method or procedure where different components are given varying degrees of importance or emphasis when making decisions or evaluations.

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