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Designing the Product
Published in David M. Anderson, Design for Manufacturability, 2020
Generating calls to encourage DFM could start with quantifying the cost of quality. Section 6.9 includes the main categories, each of which could be quantified or, at least, estimated to help make the case for DFM: Internal cost of quality includes the cost of non-value-added activities such as testing, scrap, diagnostics, rework, reinspection of rework, purchasing actions to procure replacements materials/parts, analysis of quality problems, cost of corrective actions, change-induced quality costs, and change orders to correct the design.External cost of quality includes the cost of dealing with customer complaints, refunds, returned goods, repair of returns, warranty claims, patch costs, legal liabilities, recalls, damage control, penalties, and corrective actions on the above.
Quality management in construction and Six Sigma
Published in Lincoln H. Forbes, Syed M. Ahmed, Lean Project Delivery and Integrated Practices in Modern Construction, 2020
Lincoln H. Forbes, Syed M. Ahmed
In order to quantify the benefits of TQM, quality must be measurable. Although there are numerous tools for measuring quality, the “cost of quality,” or “quality costs,” as advocated by Crosby (1984) and Juran (1988) represent an important indicator. Oberlender (1993) summarized quality costs as follows: Quality costs consist of the cost of prevention, the cost of appraisal, and the cost of failure. Prevention costs are those resulting from quality activities used to avoid deviations or errors, while appraisal costs consist of costs incurred from quality activities used to determine whether a product, process or service conforms to established requirements. Failure costs are those resulting from not meeting the requirements and can be divided into two aspects. Internal failure costs are the costs incurred on the project site due to scrap, rework, failure analysis, re-inspection, supplier error, or price reduction due to nonconformance. External failure costs are costs that are incurred once the project is in the hands of the client. These include costs for adjustments of complaints, repairs, handling and replacement of rejected material, workmanship, correction of errors, and litigation costs.
Introduction to Quality
Published in K. S. Krishnamoorthi, V. Ram Krishnamoorthi, Arunkumar Pennathur, A First Course in Quality Engineering, 2018
K. S. Krishnamoorthi, V. Ram Krishnamoorthi, Arunkumar Pennathur
The quality costs, which are the costs associated with control activities devoted to producing quality products plus the losses incurred in not producing quality products, are categorized into four categories: prevention, appraisal, internal failure, and external failure. The data collected from various sources that generate quality costs can be analyzed in two ways. The TQC, which is the sum of the costs in the four categories, expressed as a percentage of some chosen base that represents the volume of business activity, can be used to follow the progress in quality performance of an organization over time. It can also be used for comparing one company’s performance with that of another, a leader or a competitor in the same industry. When the four cost categories are expressed as a percentage of the TQC, such a distribution will reveal where deficiencies exist. The value of a quality cost study lies in pursuing such opportunities, discovering root causes, and implementing changes for improvement.
Blockchain-enabled traceability and producer’s incentive to outsource delivery
Published in International Journal of Production Research, 2023
Liu Yang, Yaodong Ni, Chi-To Ng
Proposition 3.1 shows the optimal quality decision of the producer when it delivers the product by itself. It shows that the firm will make production only when the market price is sufficiently high. The producer’s production quality decision is based on the balance between the revenue and cost. A higher production quality increases the revenue, reduces the defectiveness cost, and requires a higher quality cost. When production quality is cost-efficient, i.e. the cost-coefficient is low, the producer will improve the quality as much as possible, achieving the highest quality . When the production quality is cost-inefficient, i.e. the cost coefficient is high, the producer will decide the production quality as , indicating that some defectiveness will happen. In other words, the producer strategically chooses a quality that is not perfect, because the quality is too expensive. The results are shown in Figure 1.
Quality process reengineering in industry 4.0: A BPR perspective
Published in Quality Engineering, 2023
The cost of avoiding, detecting, and fixing quality flaws in the product is known as quality cost. Quality cost is based on two aspects: the cost of inadequate quality, which is to be decreased, and the cost of good quality (Buthmann 2014). Internal and external failure costs, including assessment and avoidance costs, are part of the lousy quality expense. This cost is proportional to the quantity of low-quality items produced in the organization; the greater the number of low-quality products delivered, the greater the failure cost, whether internal or external. Internal failure cost is related to waste, scrap, rework, and failure analysis. Waste also occurs when a product is held for unneeded work or inefficient management or communication. With the installation of IIP, proper communication within the organization will be established, and errors in the results will be minimized by employing sensors, machines, and technology. Also, the extra material holding time and cost will be reduced. External failure costs are incurred when consumers find faults and request repair and servicing, warranty claims, and returns. Sensors, Internet of Things, and machine-enabled quality checks should ensure that no defective component is delivered to the customer, avoiding repairs, returns, and warranty claims.
An optimization model of make or buy decision and quality improvement of components using rebate
Published in Cogent Engineering, 2020
Cucuk Nur Rosyidi, Namrotul Uela Fatakunul Imamah, Wakhid Ahmad Jauhari
This paper discusses the decisions that must be made in a manufacturing company concerning several important issues. First, how to determine simultaneously which component should be made in-house and which ones must be outsourced along with the respective allocation of the components. Second, how the company improve the quality of components using rebates especially for the components purchased from the suppliers. The paper shows that rebates consider as an effective way to improve the quality of components through process improvements in suppliers side. Three quality costs are considered in this paper, namely prevention cost, appraisal cost, and failure cost. Among those costs, prevention cost give the most significant impact on the total cost of suppliers.