Calculate the estimated total quality loss (cost) when the measured quality characteristic, x (e.g., circumference, measured in inches), is 78.

Practical Management Science
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Solidtronic Inc., an original equipment manufacturer (OEM), has a product specification of 75 +/− 5 (i.e., T [the target value] = 75). The cost for warranty services (when the quality characteristic, x. is either 70 or 80) is estimated as $800 per unit.

 

Calculate the estimated total quality loss (cost) when the measured quality characteristic, x (e.g., circumference, measured in inches), is 78.

 

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