• Title/Summary/Keyword: Internal & External Failure Costs

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The Correlations among the Categorized Quality Cost Factors on Small & Medium-sized Enterprises (국내 중소 제조기업의 품질비용 행태에 관한 실증 연구)

  • Koo, Il-Seob;Lee, Sang-Choon;Jang, Kwang-Soon;Kim, Yong-Bum
    • 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 -.

The Correlations among the Categorized Quality Cost Factors on SMEs (Small & Medium-sized Enterprises) (중소 제조기업의 품질비용 행태에 관한 실증 연구)

  • Lee, Sang-Choon;Koo, Il-Seob
    • 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.

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A Study of the Quality Costs in Manufacturing Systems (제조시스템에서의 품질비용에 관한 연구)

  • Chang, Seog-Ju;Lee, Sung-Woong;Park, Young-Hyun
    • 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.

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Design of Screening Inspection in a Multi-Stage Manufacturing Systems (다공정 제조시스템에서의 전수검사에 관한 연구)

  • 박영현;이창호
    • Journal of Korean Society for Quality Management
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    • v.25 no.1
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    • pp.1-16
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    • 1997
  • In this paper, we illustrate how to design screening inspections for minimizing a total quality costs in a multi-stage manufacturing systems. The total quality cost model consists of inspection costs, internal failure costs, external failure costs, and Taguchi's loss function. Although, the use of automatic test equipment such as machnie vision and CMM has greatly increased inspection speed and accuracy, screeing(100% inspection) could be considered only as a short-term method to remove nonconforming items from a population, not for a long-term quality improvement. However, screeing should be used for certain situations such as before costly operations and after unsatisfied operations. This paper ends with an example that demonstrates the usefulness of the model.

Development of the Model for Total Quality Management and Cost of Quality using Activity Based Costing in the Hospital (병원의 활동기준원가를 이용한 총체적 질관리 모형 및 질비용 산출 모형 개발)

  • 조우현;전기홍;이해종;박은철;김병조;김보경;이상규
    • Health Policy and Management
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    • v.11 no.2
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    • pp.141-168
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    • 2001
  • Healthcare service organizations can apply the cost of quality(COQ) model as a method to evaluate a service quality improvement project such as Total Quality Management (TQM). COQ model has been used to quantify and evaluate the efficiency and effectiveness of TQM project through estimation between cost and benefit in intervention for a quality Improvement to provide satisfied services for a customer, and to identify a non value added process. For estimating cost of quality, We used activities and activity costs based on Activity Based Costing(ABC) system. These procedures let the researchers know whether the process is value-added by each activity, and identify a process to require improvement in TQM project. Through the series of procedures, health care organizations are service organizations can identify a problem in their quality improvement programs, solve the problem, and improve their quality of care for their costumers with optimized cost. The study subject was a quality improvement program of the department of radiology department in a hospital with n bed sizes in Metropolitan Statistical Area (MSA). The principal source of data for developing the COQ model was total cases of retaking shots for diagnoses during five months period from December of the 1998 to April of the 1999 in the department. First of the procedures, for estimating activity based cost of the department of diagnostic radiology, the researchers analyzed total department health insurance claims to identify activities and activity costs using one year period health insurance claims from September of the 1998 to August of the 1999. COQ model in this study applied Simpson & Multher's COQ(SM's COQ) model, and SM's COQ model divided cost of quality into failure cost with external and internal failure cost, and evaluation/prevention cost. The researchers identified contents for cost of quality, defined activities and activity costs for each content with the SM's COQ model, and finally made the formula for estimating activity costs relating to implementing service quality improvement program. The results from the formula for estimating cost of quality were following: 1. The reasons for retaking shots were largely classified into technique, appliances, patients, quality management, non-appliances, doctors, and unclassified. These classifications by reasons were allocated into each office doing re-taking shots. Therefore, total retaking shots categorized by reasons and offices, the researchers identified internal and external failure costs based on these categories. 2. The researchers have developed cost of quality (COQ) model, identified activities by content for cost of quality, assessed activity driving factors and activity contribution rate, and calculated total cost by each content for cost for quality, except for activity cost. 3. According to estimation of cost of quality for retaking shots in department of diagnostic radiology, the failure cost was ₩35,880, evaluation/preventive cost was ₩72,521, two times as much as failure cost. The proportion between internal failure cost and external failure cost in failure cost is similar. The study cannot identify trends on input cost and quality improving in cost of qualify over the time, because the study employs cross-sectional design. Even with this limitation, results of this study are much meaningful. This study shows possibility to evaluate value on the process of TQM subjects using activities and activity costs by ABC system, and this study can objectively evaluate quality improvement program through quantitative comparing input costs with marginal benefits in quality improvement.

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A Resource Allocation Model for Data QC Activities Using Cost of Quality (품질코스트를 이용한 데이터 QC 활동의 자원할당 모형 연구)

  • Lee, Sang-Cheol;Shin, Wan-Seon
    • IE interfaces
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    • v.24 no.2
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    • pp.128-138
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    • 2011
  • This research proposes a resource allocation model of Data QC (Quality Control) activities using COQ (Cost of Quality). The model has been developed based on a series of research efforts such as COQ classifications, weight determination of Data QC activities, and an aggregation approach between COQ and Data QC activities. In the first stage of this research, COQ was divided into the four typical classifications (prevention costs, appraisal costs, internal failure costs and external failure costs) through the opinions from five professionals in Data QC. In the second stage, the weights of Data QC activities were elicited from the field professionals. An aggregation model between COQ and Data QC activities has been then proposed to help the practitioners make a resource allocation strategy. DEA (Data Envelopment Analysis) was utilized for locating efficient decision points. The proposed resource allocation model has been validated using the case of Korea national defense information system. This research is unique in that it applies the concept of COQ to the data management for the first time and that it demonstrates a possible contribution to a real world case for budget allocation of national defense information.

Determination of Quality Cost Policy under the Multiple Assignable Causes (다중이상원인하의 경제적 품질비용 정책결정)

  • Kim Kyewan;Park Ji Yeon;Yun Deok Kyun
    • Proceedings of the Society of Korea Industrial and System Engineering Conference
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    • 2002.05a
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    • pp.1-8
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    • 2002
  • At present, company has to produce a product that consumer like with a competitive price, a good quality, and a fitting time to supply. Process control and qualify control are very important to supply with a product uniformly and inexpensively In this paper, the characteristic of product quality is monitored by control chart during the machining process and construction of quality control cycle is considered to divide into two types in this case that different assignable causes lead to shifts having different magnitudes. Then we are intended to find a process shift magnitude which has economical quality cost policy and are considered to quality cost functions to find a process shift magnitude. Those costs are categorized into the well-known categories of prevention, appraisal, and internal failure and external failure. This paper ends with numerical examples that demonstrate the usefulness of the model.

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A Case Study on The Development of Quality Cost Management System and Continuous Improvement in The Forging Industry (단조산업의 품질비용 관리체계 개발 및 지속적 품질개선 방안에 관한 사례 연구)

  • Kim, Kang-Woo;Cha, Byung-Chul
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.21 no.9
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    • pp.218-228
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    • 2020
  • The material industry is an important infrastructure industry that uses process technology in order to produce parts applied to the final product and determine the quality of the finished product. However, the market environment, which has been recognized as a 3D industry, has deteriorated recently and lost competitiveness compared to other material industry countries. This study analyzed the characteristics of forging companies and The study found that three characteristics of the forging industry, facility-oriented, order-based, and field-centered, and internal failure cost and external failure costs were set as the range of quality cost. A total of eight quality tasks were selected by applying the quality cost management system and continuous quality improvement process developed for large-scale A forging company, and improvement activity proved its effectiveness reducing quality costs by 63.3% compared to the previous year. The research helps forging companies establish a quality management strategy by systematically managing and analyzing quality costs.

A Test on Quality Improvement of Printed Circuit Board Using Mold Compensation (금형보정을 이용한 PCB 품질향상에 관한 실험)

  • 전영호;권이장
    • Journal of Korean Society for Quality Management
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    • v.25 no.1
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    • pp.135-141
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    • 1997
  • The Copper-Clad Laminate (CCL) is a main electronic component of specialtype printed circuit boards (PCBs) such as Silver Through Hole PCB. This CCL should have high reliability under the aging test, and usually the test is done at a higher temperature (110-$150^{\circ}C$) than the normal. Then, this test condition of high temperature may cause such quality problems as hole eccentricity and reduction of distance between part holes. After measuring the CCL shrinkage affected by temperature, the correction factor of a press mold was a, pp.ied to solve these problems. The results showed that the tolerance of hole pitch(${\pm}$$100{\mu}m$) was satisfactory and the internal and external failure costs were reduced by 55%.

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Optimization of construction support scheme for foundation pits at zero distance to both sides of existing stations based on the pit corner effect

  • Tonghua Ling;Xing Wu;Fu Huang;Jian Xiao;Yiwei Sun;Wei Feng
    • Geomechanics and Engineering
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    • v.38 no.4
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    • pp.381-395
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    • 2024
  • With the wide application of urban subway tunnels, the foundation pits of new stations and existing subway tunnels are becoming increasingly close, and even zero-distance close-fitting construction has taken place. To optimize the construction support scheme, the existing tunnel's vertical displacement is theoretically analyzed using the two-stage analysis method to understand the action mechanism of the construction of zero-distance deep large foundation pits on both sides of the existing stations; a three-dimensional numerical calculation is also performed for further analysis. First, the additional stress field on the existing tunnel caused by the unloading of zero-distance foundation pits on both sides of the tunnel is derived based on the Mindlin stress solution of a semi-infinite elastic body under internal load. Then, considering the existing subway tunnel's joints, shear stiffness, and shear soil deformation effect, the tunnel is regarded as a Timoshenko beam placed on the Kerr foundation; a sixth-order differential control equation of the tunnel under the action of additional stress is subsequently established for solving the vertical displacement of the tunnel. These theoretical calculation results are then compared with the numerical simulation results and monitoring data. Finally, an optimized foundation pit support scheme is obtained considering the pit corner effect and external corner failure mode. The research shows a high consistency between the monitoring data,analytical and numerical solution, and the closer the tunnel is to the foundation pit, the more uplift deformation will occur. The internal corner of the foundation pit can restrain the deformation of the tunnel and the retaining structure, while the external corner can cause local stress concentration on the diaphragm wall. The proposed optimization scheme can effectively reduce construction costs while meeting the safety requirements of foundation pit support structures.