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Computing Quality Cost

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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 of 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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Solution Summary

This solution illustrates how to compute the quality cost of meeting a certain specification.

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Given:
T = 75
n = 70 or 80
L(x) = $800

L(x) = k* (n-T)^2

At n=70,

$800 = k*(70-75)^2
$800 = ...

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