• Journal of Korean Society for Quality Management
• /
• v.33 no.2
• /
• pp.87-99
• /
• 2005

Quality cost system is a key element of an organization's quality program. In this paper we suggest a quality cost evaluation system for aerospace industries considering the aircraft development and manufacturing processes. To reduce the cost of poor quality, we present an extended quality cost concept and detailed quality cost categories. The extended quality cost includes prevention cost, appraisal cost, failure cost, and the cost hidden in the processes. The evaluation of this extended quality cost will be helpful in identifying critical quality issues in aerospace industries.

• Industrial Engineering and Management Systems
• /
• v.6 no.2
• /
• pp.136-145
• /
• 2007

The selection of suppliers and the determination of order quantities to be placed with those suppliers are important decisions in a supply chain. In this research, a non-linear mixed integer programming model is presented to select suppliers and determine the order quantities. The model considers the purchasing cost which takes into account quantity discount, the cost of transportation, the fixed cost for establishing suppliers, the cost for holding inventory, and the cost of receiving poor quality parts. The capacity constraints for suppliers, quality and lead-time requirements for the parts are also taken into account in the model. Since the purchasing cost, which is a decreasing step function of order quantities, introduces discontinuities to the non-linear objective function, it is not easy to employ traditional optimization methods. Thus, a heuristic algorithm, called particle swarm optimization (PSO), is used to find the (near) optimal solution. However, PSO usually generates initial solutions randomly. To improve the PSO solution quality, a heuristic procedure is proposed to find an initial solution based on the average unit cost including transportation, purchasing, inventory, and poor quality part cost. The results show that PSO with the proposed initial solution heuristic provides better solutions than those with PSO algorithm only.

• Proceedings of the Korean Society for Quality Management Conference
• /
• 2004.04a
• /
• pp.519-530
• /
• 2004

• International Journal of Quality Innovation
• /
• v.3 no.2
• /
• pp.159-173
• /
• 2002

Any organization's Six Sigma program may be at high risk without heeding the lessons learned from the past and that tries to operate without a robust business foundation. A foundation that preferably should consist of stepping-stones such as a 5-S house-keeping program, an effective Integrated Management System (IMS), which includes a strong focus on planning for quality to fully capture the Voice of the Customer (VOC), and an organization-wide training scheme, as well as a reliable Cost of Poor Quality (COPQ) system. That's the best advise I can give to any organization that wishes to embark on a Six Sigma improvement program and hope to be successful. The paper will elaborate on the above issues and provide suggested solutions based on the review of published historical information and the experiences encountered over the last four decades by the author, as a quality practitioner and consultant, in industries that produced safety-critical product. This author maintains that few fundamentally new or useful things have been created in the field of Quality during the last couple of decades. Nevertheless, this paper deliberates on a number of relatively “newer” issues including the concept of “three types of customers”, the CTC, “Critical To Customer” term, the eight Quality Management Principles of the new ISO 9000 family, the growth of industry-specific standards, the adoption of Integrated Management Systems, the rebirth of AS2561 COQ standard, the spread of Six Sigma as well as related ASQ certification and the need for a robust business foundation to ensure Six Sigma survival.

• Journal of Korean Society for Quality Management
• /
• v.18 no.1
• /
• pp.116-128
• /
• 1990

Consumer's demand level for products and goods selection power is considerably improved. The pressure of loss compensation is also being accelerated by products which bring damage on property. The producer prevents the loss from causing poor products and considering the quality cost allotment in these circumstances. That is to say, producer should be concerned with the strategy of product liability prevention instead of passive defence policy. This paper intends to estabilish the optimum quality cost in considering product liability, and present the correlation of quality cost elements and multiple regression analysis. It can utilized in qualitycost and budget planning.

• Journal of the Korea Safety Management & Science
• /
• v.14 no.1
• /
• pp.189-200
• /
• 2012

Many companies have endeavored to build a quality cost management system in order to be more productive business organization. This study shows the detail procedures of constructing a quality cost management system which is believed to be appropriate for their business system. That is, the method to calculate the quality cost and the linking logic between the quality improvement and its financial impact are explained based on a particular industry case. In this sense, the changes of business performance measures such as market share, customer satisfaction, etc. were analyzed in the longitudinal perspective for the consecutive 4 years (2003~2006). As the quantitative results of this study, the improvement activities based on the quality cost management system resulted in the 32% reduction of quality cost and the 121% increase of business profit, compared 2005 with 2006. In the qualitative perspective, the successive practice of quality cost reduction and the job information sharing in business unit were obtained by providing the best practices and bench-marking cases. Finally, the customer satisfaction has increased so that the customer-friendly management system has been accomplished. With these efforts, the 3.4% increase of the market share and the 3% increase of the customer satisfaction were obtained in 2005. As the future study, the current study can be extended to the concept of COPQ (cost of poor quality) which focuses on the hidden quality cost of the whole business activities. Such extension of analysis will help us understand the wider role of a quality cost management system in the business.

• Journal of Distribution Science
• /
• v.13 no.8
• /
• pp.27-40
• /
• 2015

Purpose - Total Quality Management (TQM) has received significant attention and interest from a large number of organizations around the world in various industries. These organizations have tried to embody TQM concepts in areas such as engineering and product design, marketing, R&D, procurement, production, personnel, and product inspection. Research design, data, and methodology - This study presents an overview of the fundamentals of TQM and an in depth review of the obstacles to the successful implementation of TQM. Results - In order to control the cost of manufacturing, the tracking of the cost of quality (COQ) allows companies to capture the actual overall cost incurred in producing a unit of product or service. The study explores the reasons why companies track the COQ and ways to address it. Conclusions - Based on the results, COQ is one of the key performance indicators for making more accurate strategic decisions as well as a critical aspect of TQM. The study also presents a few popular quality improvement tools that have been widely used in organizations successfully implementing TQM.

• KIEE International Transaction on Electrical Machinery and Energy Conversion Systems
• /
• v.5B no.4
• /
• pp.374-381
• /
• 2005

The ability to provide quality power has become a significant issue in power systems. The main causes of poor power quality are harmonic currents, poor power factor, supply-voltage variations, etc. A technique of achieving both active current distortion compensation, power factor correction and also mitigating the supply-voltage variation (sag or swell) at the load side is presented in this paper. The operation and rating issues of the proposed Single-phase Unified Power Quality Conditioner are also highlighted. To reduce the total cost while simultaneously increasing the performance, the system is fully digitally controlled using the fixed-point TMS320F240 digital signal processor. The performances of the UPQC, which is composed by shunt and series PWM controlled-converters, have been verified on a laboratory prototype.

• Journal of Electrical Engineering and Technology
• /
• v.9 no.4
• /
• pp.1154-1162
• /
• 2014

In the restructured electricity market, Performance-Based Regulation (PBR) regime has been introduced to the distribution network. To ensure the network stability, this regime is used along with quality regulations. Quality regulation impose new financial risks on distribution system operators (DSOs). The poor quality of the network will result in reduced revenues for DSOs. The mentioned financial risks depend on the quality indices of the system. Based on annual variation of these indices, the cost of quality regulation will also vary. In this paper with regard to reclosing fault in distribution network, we develop a risk-based method to assess the financial risks caused by quality regulation for DSOs. Furthermore, in order to take the stochastic behavior of the distribution network and quality indices variations into account, time-sequential Monte Carlo simulation method is used. Using the proposed risk method, the effect of taking reclosing time into account will be examined on system quality indicators and the cost of quality regulation in Swedish rural reliability test system (SRRTS). The results show that taking reclosing fault into consideration, affects the system quality indicators, particularly annual average interruption frequency index of the system (SAIFI). Moreover taking reclosing fault into consideration also affects the quality regulations cost. Therefore, considering reclosing time provides a more realistic viewpoint about the financial risks arising from quality regulation for DSOs.

• Plant Journal
• /
• v.11 no.2
• /
• pp.45-51
• /
• 2015

In this paper, studied condenser operating management which is affecting power plants efficiency considering the cost of poor quality. Sea water temperature and condenser pressure have clear correlation in S power plants. As the sea water temperature changes, condenser pressure changed -1.7~+20 mmHg from design condenser pressure(38.1 mmHg). Use the heat rate correction curve from manufactory company, realized that efficiency and cost of poor quality changed 0.0201%, 12,830 won/h at Unit #1,2 but 0.0155%, 9,832 won/h when condenser pressure 1 mmHg rise. Also, checked that it is changed depend on seasonal corresponding operation, plant ageing and the point of preventive maintenance like overhaul maintenance. This study said if we considered complying with management range and planning overhaul maintenance, then it could help reducing operating maintenance losses minimum 2.5 billion won per 1 year (case : Unit #1, forty days maintenance).