4 ms·
That first approximation is only valid for small total numbers of failures. If a failure repeats, the loss function is not simply A times B times C but greater,
by madez 8y ago
That first approximation is only valid for small total numbers of failures. If a failure repeats, the loss function is not simply A times B times C but greater, for example by loss of perceived quality of products, or by criminal investigations against the company and individuals in it.
- munk-a 8y agoAt the same time a recall doesn't just cost the amount of parts and labour to collect and refit the effected products, it has a similar impact on the prestige of a company. Even if the company is "acting in the right" it will still be known that the company erred in the first place.