Mapping the Transfer Function

Based on the Risk Decomposition of the Vibration Test, we build the transfer function as following:

Assumption

We simplified the testing scenario that after they fail in the first test and redesign the product, they’ll pass the second test.- The probabilities used to determine if the product passed (95%) or failed (5%) the initial test.- The reliability increases and the liability decreases to approximately 1% of the potential liability cost, compared to 10% for no testing.

For the Test Fail Case:

The redesign cost is added, as well as 10% of the total test cost. Monte Carlo simulations are performed on the test cost, liability cost, and redesign cost. 

For the Test Pass Case:

No redesign costs or test cost added.

From the above assumption the transfer function was developed as follows