• Journal of the Korea Safety Management & Science
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• v.13 no.2
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• pp.185-193
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• 2011

The successful and sustainable growth of SMEs depends on their ability of strengthen their competitiveness in quality and cost and service more than anything else as a fundamental of operation. Among these key competitive factors of SMEs, quality is the most critical factor in manufacturing business fields. There are many different ways to improve the quality performance but it needs proper management decision to choose the best way what can maximize outputs with minimum inputs. And it needs effective measurement methods and some indicators to analysis the quality performance properly. The quality cost is one of the simplest key indicators to measure the quality performance and the effectiveness of quality related management decisions. In this study, through survey on local SMEs, we found that their average annual quality cost ratio versus turnover - total amount of annual quality cost divided by annual turnover - is around 3.69% excluded some SME's performances what have different quality control measures with others. And we found some results what corresponded with the early studies on the correlations between those categorized quality costs factors and some discrepancies between some of the literature model and the early case study results as follows. There were negative correlations between the Prevention costs and the External failure costs, and the Appraisal costs and the External failure costs, and there was positive correlation between the Appraisal costs and Internal failure costs same as early studies. But, we couldn't found any strong negative correlations between the Cost of control - Prevention costs & Appraisal costs - and the Cost of Failure of control - Internal & External failure costs -.

• Transactions of the Korean Society of Automotive Engineers
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• v.22 no.3
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• pp.19-24
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• 2014

This study, the exchange value of the car after the repair, which affects the valuation elements and repair characteristics factors were investigated. Based on this specific accident damaged condition of the car, repair range, repair methods, repair costs, market transactions, taking into account the vehicle's depreciation appraisal method is proposed.

• Journal of Software Assessment and Valuation
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• v.16 no.1
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• pp.27-36
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• 2020

The software development cost appraisal is treated as a part of the program completion appraisal, and the software engineering methodology is applied. In particular, software cost estimation techniques have been actively applied. For more information about the software development costs calculation, we can refer to the "SW cost estimation guide". Although successful appraisal of a number of development costs based on the guide has been processed, but a number of cases requiring discussion of appraisal results have been discovered. In this study, we propose a use case-based size estimation method to maintain the accuracy and consistency of size estimation. As a result of performing performance evaluation of the proposed method in an environment similar to the development cost appraisal case, it was proved that the accuracy was improved over the existing function points method.

• Proceedings of the Safety Management and Science Conference
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• 2011.04a
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• pp.731-746
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• 2011

The successful and sustainable growth of SMEs depends on their ability of strengthen their competitiveness in quality and cost and service more than anything else as a fundamental of operation. Among these key competitive factors of SMEs, quality is the most critical factor in manufacturing business fields. Because quality strongly influence cost and service performance on this manufacturing business field. There are many different ways to improve the quality performance but it needs proper management decision to choose the best way what can maximize outputs with minimum inputs. And it needs effective measurement methods and some indicators to analysis the quality performance properly. The quality cost is one of the simplest key indicators to measure the quality performance and the effectiveness of quality related management decisions. The major purpose of this study is to diagnose the categorized current level of actual quality cost of local SMEs to maximize their quality management effectiveness through comparing their level with others what's expressed in early studies. In this study, through survey on local SMEs, we found that their average annual quality cost ratio versus turnover - Total amount of annual quality cost divided by annual turnover - is around 3.69% excluded some SME's performances what have different quality control measures with others. And we found some results what corresponded with the early studies on the correlations between those categorized quality costs factors and some discrepancies between some of the literature model and the early case study results as follows. There were negative correlations between the Prevention costs and the External failure costs, and the Appraisal costs and the External failure costs, and there was positive correlation between the Appraisal costs and Internal failure costs same as early studies. But, we couldn't found any strong negative correlations between the Cost of control - Preventive costs & Appraisal costs - and the Cost of Failure of control - Internal & External failure costs -. It reveals not only the lack of effectiveness on their preventive or appraisal activities but also it can reveal there were so many effective ways to prevent the failure costs properly such as some innovative investment on Factory automation includes Error Proofing and more preventive actions to improve the effectiveness of the typical management methods likes CE (Concurrent Engineering), APQP (Advanced Product Quality Planning), FMEA (Failure Mode & Effect Analysis) etc.

• Journal of Korean Society for Quality Management
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• v.31 no.4
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• pp.1-18
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• 2003

Quality is a critical competitive factor in today's environment because of the impact of quality on costs and delivery. Many companies regard quality as a key concept of company strategy in order to achieve the competitive edge. Measuring and reporting quality cost is the first step in quality management program. The supposition of quality cost model is that investment in prevention activities will bring rewards from reduced failure costs, and that further investment in prevention activities will show profits from reduced appraisal costs. In this study, the degree of quality cost deviation is conceptualized. This means a deviation between the ideal and present ranking in the amounts of quality cost categories. This study analysed that the effect of its deviation on quality management activity and performance variables. However, there are no difference in these variables. The major reason is that most of companies are endeavoring for quality management but operating quality cost system unsystematically. The review against a prevention and appraisal activity is necessary.

• Proceedings of KOSOMES biannual meeting
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• 2001.10a
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• pp.117-134
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• 2001

Quality costs seem to be one of the effective tools to assess quality management activities, but shipping industries have not controlled quality costs because of difficulty in cost itemization and cost data collection. This study has attempted to itemize shipping quality costs in detail and researches the composition of actual quality costs of sampled shipping companies in Korea. Result of research shows that stopping quality costs were composited by 24.3%, 3.8% and 71.8% of prevention costs, appraisal costs and failure costs, respectively and very high relationship between total qualify cost and other quality costs. This research also recommended practical methods for quality management by using indexes of quality costs.

• The Journal of Fisheries Business Administration
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• v.29 no.2
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• pp.199-216
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• 1998

An economic appraisal of a proposed marine ranching project is analysed using capital budgeting model such as net present value(NPV) and internal rate of return( IRR) as well as sensitivity analysis and goal seeking model. Of the factors for economic appraisal, direct benefits are to be determined by estimated harvest, prices and costs incurred by catching fishes, and indirect benefits include the additional economic effect of recreational fishing. And judging the worth of these project options depends upon the choice of discount rate of which 8.5% is recommended here. On the basis of estimated production, prices and costs the project is expected to yield NPV=615 million won and IRR=8.8%, which is quite accepted for an economic feasibility, under the first scenario, and NPV= -127 million won and IRR=7.93%, which is rejected, under the second scenario. Sensitivity analysis has been performed by calculating the switching value and sensitivity indicator in respect of the main project parameters. The results suggest that the project NPV and IRR are especially sensitive to fishes(rock fish and other rock fish) prices and fixed costs. Finally goal seeking analysis is carried out in order to reach a desired level of performance like NPV=0 in respect of the amount of hatchery-reared juverniles, the prices and the discount rate.

• Journal of Korean Society of Forest Science
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• v.97 no.3
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• pp.274-284
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• 2008

For forest valuation, various input data were generally required: for example, slope, timber stocks, logging costs, hauling costs, market values of timber, afforestation costs, thinning costs, and so on. To enhance the efficiency of forest valuation process, it would be helpful to guide how and where to acquire such data sets. Moreover, to make an appraisal of timber assets through the Forestry Household Economy Survey, it would be inevitable to use standardized input data by region or tree species. Therefore, this research intended to develop a methodology of standardizing each input data, and to present its available data sources. Also, a guidance was presented to explain how to control input data within the appraisal process. Then, the appraisal process were analyzed and summarized in four types of information such as system flowchart, process flowcharts, detail flowcharts, and skimmer data, which are essential elements in developing an appraisal software, named EnVAST (Engine of Valuation System for Timber Assets). The software was designed to generate 'the standard forest valuation table' by species and province as the final output that is applicable for the forest valuation through the Forestry Household Economy Survey in Korea.

• Journal of Korean Society for Quality Management
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• v.23 no.2
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• pp.10-27
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• 1995

This paper illustrates a method of developing a function of quality costs in manufacturing systems. It begins with a discussion of the problem statement of this research. A review of existing literatures related to quality costs and economic design of quality inspection methods are discussed. Next mathematical models that quantify the production cycle time and quality costs are formulated. This paper ends with an example that demonstrates the usefulness of the model and highlights the importance of using a system approach. The main contribution of this work is the more realistic considerations of the four types of quality costs (prevention cost, appraisal cost, internal failure cost, external failure cost) in manufacturing systems.

• Journal of Korean Society for Quality Management
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• v.40 no.2
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• pp.106-116
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• 2012

This paper aims to develop the adequate quality cost model at a company which delivers ICT(information communication technology) services. One particular business unit was in the first instance selected and quality costs were then analysed at an organization level, for a department and for specific processes. Some areas were determined for quality improvement at each level and their causes were also investigated. However, the existing PAF(prevention, appraisal and failure) models reveled some limitations because the ICT services company included the different number of large and complicated business processes. The PAF model did not sufficiently highlight the detailed causes of failure costs. It did not also stimulate the relevant department's strong responsibility to improve such problems. Both micro PAF and process cost models were proposed in order to cope with this. In final, it explains the relationship between six sigma and quality costing, suggesting how to use the quality costing results as a means of promoting either continuous improvement or innovation in a case company.