Friday, October 18, 2019

Decision of Uncertainty Paper Essay Example | Topics and Well Written Essays - 750 words

Decision of Uncertainty Paper - Essay Example In case of any manufacturing defects or the product failing within the period, the company will replace them with fresh ones. Meanwhile the customer service team has recently been receiving complaints from customers that some of the weights are not able to take the load and are developing cracks. This has caused more concern to the marketing department. The marketing team wants to ensure that the campaign will be profitable to the company. As a response to this concern, the quality department has proposed that the testing methodologies have to be made more advanced and the current practices are inadequate. The quality team has proposed a laser testing machine which can replace the current destructive testing. The laser machine can scan all the weights manufactured by the company and can notify defects in an effective manner. The laser testing method involves higher costs in terms of machinery, installation, maintenance and training. The quality has estimated a total investment of about $ 100,000 towards these expenses. The management however feels that the current testing methods are sufficient and the campaign will be profitable. However the decision is still uncertain. In order to reduce the uncertainties in making the decision, a research is designed and carried out. The last 200 batches that were sold by the company were chosen as the sample. Each batch contains 50 weights and hence a total of 1000 products are considered for this research. After collecting data from the customer service department, it has been found that 40 instances were reported where weights have developed cracks, i.e., a total of 40 weights out of 1,000 were reported broken. Hence the probability of a defective weight (impact testing) is 0.04. The quality team has informed that the laser machine will be very accurate and help identify the defective weights and will bring down

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