In modern companies, it is certainly cheaper to find defects at the factory rather than the customer, since returns and shipping are expensive. But then, do you lose money by extensive testing at the factory versus the few repairs in the field? Or even comprise at Safety in Design? Toyota (uncontrolled acceleration) and GM (defective ignition switches) found out the hard way with the problems in their cars, causing huge problems with recalls and customer satisfactions. This problem explores this Japanese world view of Design, and was created by Taguchi. The tolerance of the output voltage of a certain circuit is Δ = + 10 V. The actual repair cost (A) of a repair when the circuit fails is ¥ 6000 at the customer site. The rework cost when a circuit is found defective at the factory by extensive testing is (Ar) is ¥ 50.. If the company wants to maximize its profits, it can test more extensively at the factory by testing to a tighter tolerance. Find the optimal testing -tolerance at the factory ? using Quality Loss function (QLF). HINT-L (factory)-A2 L (customer) = AR.