Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If a team from Trilogox came up with the following PFMEA exercise results during its risk
exposure analysis:
Risk
Occurrence
Probably will occur
Outcome
Detection
Financial
Cost increase by Detection method has
30%
medium effectiveness
Marketing
Probably will not
Cost increase by Detection method has
medium effectiveness
Cost increase by Detection method has
medium effectiveness
Cost increase by Detection method has
2%
occur
Quality
Probably will occur
40%
Capability
Probably will occur
10%
medium effectiveness
Materials
Probably will occur
Cost increase by Detection method has
medium effectiveness
Cost increase by Detection method has
10%
Labor
Probably will occur
40%
medium effectiveness
b. Which are the most critical risks by identifying the critical values? What actions do you
recommend? Evaluate the risks by assigning one degree of leniency in their value.
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