• Title/Summary/Keyword: Product Failure

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Differential Effects of Recovery Efforts on Products Attitudes (제품태도에 대한 회복노력의 차별적 효과)

  • Kim, Cheon-GIl;Choi, Jung-Mi
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.1
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    • pp.33-58
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    • 2008
  • Previous research has presupposed that the evaluation of consumer who received any recovery after experiencing product failure should be better than the evaluation of consumer who did not receive any recovery. The major purposes of this article are to examine impacts of product defect failures rather than service failures, and to explore effects of recovery on postrecovery product attitudes. First, this article deals with the occurrence of severe and unsevere failure and corresponding service recovery toward tangible products rather than intangible services. Contrary to intangible services, purchase and usage are separable for tangible products. This difference makes it clear that executing an recovery strategy toward tangible products is not plausible right after consumers find out product failures. The consumers may think about backgrounds and causes for the unpleasant events during the time gap between product failure and recovery. The deliberation may dilutes positive effects of recovery efforts. The recovery strategies which are provided to consumers experiencing product failures can be classified into three types. A recovery strategy can be implemented to provide consumers with a new product replacing the old defective product, a complimentary product for free, a discount at the time of the failure incident, or a coupon that can be used on the next visit. This strategy is defined as "a rewarding effort." Meanwhile a product failure may arise in exchange for its benefit. Then the product provider can suggest a detail explanation that the defect is hard to escape since it relates highly to the specific advantage to the product. The strategy may be called as "a strengthening effort." Another possible strategy is to recover negative attitude toward own brand by giving prominence to the disadvantages of a competing brand rather than the advantages of its own brand. The strategy is reflected as "a weakening effort." This paper emphasizes that, in order to confirm its effectiveness, a recovery strategy should be compared to being nothing done in response to the product failure. So the three types of recovery efforts is discussed in comparison to the situation involving no recovery effort. The strengthening strategy is to claim high relatedness of the product failure with another advantage, and expects the two-sidedness to ease consumers' complaints. The weakening strategy is to emphasize non-aversiveness of product failure, even if consumers choose another competitive brand. The two strategies can be effective in restoring to the original state, by providing plausible motives to accept the condition of product failure or by informing consumers of non-responsibility in the failure case. However the two may be less effective strategies than the rewarding strategy, since it tries to take care of the rehabilitation needs of consumers. Especially, the relative effect between the strengthening effort and the weakening effort may differ in terms of the severity of the product failure. A consumer who realizes a highly severe failure is likely to attach importance to the property which caused the failure. This implies that the strengthening effort would be less effective under the condition of high product severity. Meanwhile, the failing property is not diagnostic information in the condition of low failure severity. Consumers would not pay attention to non-diagnostic information, and with which they are not likely to change their attitudes. This implies that the strengthening effort would be more effective under the condition of low product severity. A 2 (product failure severity: high or low) X 4 (recovery strategies: rewarding, strengthening, weakening, or doing nothing) between-subjects design was employed. The particular levels of product failure severity and the types of recovery strategies were determined after a series of expert interviews. The dependent variable was product attitude after the recovery effort was provided. Subjects were 284 consumers who had an experience of cosmetics. Subjects were first given a product failure scenario and were asked to rate the comprehensibility of the failure scenario, the probability of raising complaints against the failure, and the subjective severity of the failure. After a recovery scenario was presented, its comprehensibility and overall evaluation were measured. The subjects assigned to the condition of no recovery effort were exposed to a short news article on the cosmetic industry. Next, subjects answered filler questions: 42 items of the need for cognitive closure and 16 items of need-to-evaluate. In the succeeding page a subject's product attitude was measured on an five-item, six-point scale, and a subject's repurchase intention on an three-item, six-point scale. After demographic variables of age and sex were asked, ten items of the subject's objective knowledge was checked. The results showed that the subjects formed more favorable evaluations after receiving rewarding efforts than after receiving either strengthening or weakening efforts. This is consistent with Hoffman, Kelley, and Rotalsky (1995) in that a tangible service recovery could be more effective that intangible efforts. Strengthening and weakening efforts also were effective compared to no recovery effort. So we found that generally any recovery increased products attitudes. The results hint us that a recovery strategy such as strengthening or weakening efforts, although it does not contain a specific reward, may have an effect on consumers experiencing severe unsatisfaction and strong complaint. Meanwhile, strengthening and weakening efforts were not expected to increase product attitudes under the condition of low severity of product failure. We can conclude that only a physical recovery effort may be recognized favorably as a firm's willingness to recover its fault by consumers experiencing low involvements. Results of the present experiment are explained in terms of the attribution theory. This article has a limitation that it utilized fictitious scenarios. Future research deserves to test a realistic effect of recovery for actual consumers. Recovery involves a direct, firsthand experience of ex-users. Recovery does not apply to non-users. The experience of receiving recovery efforts can be relatively more salient and accessible for the ex-users than for non-users. A recovery effort might be more likely to improve product attitude for the ex-users than for non-users. Also the present experiment did not include consumers who did not have an experience of the products and who did not perceive the occurrence of product failure. For the non-users and the ignorant consumers, the recovery efforts might lead to decreased product attitude and purchase intention. This is because the recovery trials may give an opportunity for them to notice the product failure.

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Failure Analysis to Derive the Causes of Abnormal Condition of Electric Locomotive Subsystem (센서 데이터를 이용한 전기 기관차의 이상 상태 요인분석)

  • So, Min-Seop;Jun, Hong-Bae;Shin, Jong-Ho
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.41 no.2
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    • pp.84-94
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    • 2018
  • In recent years, the diminishing of operation and maintenance cost using advanced maintenance technology is attracting many companies' attention. Especially, the heavy machinery industry regards it as a crucial problem since a failure of heavy machinery requires high cost and long downtime. To improve the current maintenance process, the heavy machinery industry tries to develop a methodology to predict failure in advance and to find its causes using usage data. A better analysis of failure causes requires more data so that various kinds of sensor are attached to machines and abundant amount of product usage data is collected through the sensor network. However, the systemic analysis of the collected product usage data is still in its infant stage. Many previous works have focused on failure occurrence as statistical data for reliability analysis. There have been less works to apply product usage data into root cause analysis of product failure. The product usage data collected while failures occur should be considered failure cause analysis. To do this, this study proposes a methodology to apply product usage data into failure cause analysis. The proposed methodology in this study is composed of several steps to transform product usage into failure causes. Various statistical analysis combined with product usage data such as multinomial logistic regression, T-test, and so on are used for the root cause analysis. The proposed methodology is applied to field data coming from operated locomotive and the analysis result shows its effectiveness.

Analytic Model on the Success/Failure Structure of New Product Development by Product Characteristic Grill (제품속성별 신제품개발의 성패구조 분석모형)

  • Gwon Cheol Sin;Lee Jae Ha
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2002.05a
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    • pp.205-211
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    • 2002
  • The purpose of this paper is 1) to extract managerial factor into each cell which is classified by the characteristic grill of new products 2) to construct a management model of new product development for korean companies. For this purpose, the characteristic grill of new products is classified by which is market/technology sphere. Moreover the focus of this analysis is on examination of success/failure factors, which have an important effect upon new product success or failure. The variables for this study were selected from literature survey and pre-interview was implemented specially. The subject of study was project leaders of electronics industry where have taken the leading part in product development activities in Korean manufacturing industries. Enquete survey was conducted in each firm and project managers were asked to respond. Conclusion of this study based on many significant results gained by the various multi-variate analysis are summarized as follows. First, it can he noted that success/failure factors are different by each classified model and characteristic grill of a new product. Second, it has been identified that the important factors of success products were technical & management support and market ability, the important factor of failure product were lacking in ability of technical development and R&D management system construction. This paper presents some useful guidelines in strategic and managerial aspects for development of new products. Concurrently, the model of this study should be a great practical approach for application of actual affairs.

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Consumer Misperceptions, Product Liability Law and Product Safety

  • Lee Jong-In
    • International Journal of Human Ecology
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    • v.6 no.2
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    • pp.63-72
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    • 2005
  • This paper considered the impact of changing the product liability rule from consumer to producer liability on product safety under asymmetric information. In particular, it has been attempted to remove several constraints on antecedent studies. The main results of the study are as follows: under the misperception of the risk on a product, consumers may underestimate the probability of product failure. In this case, the accident rate can be lowered under the producer's liability rule. However, even under the asymmetric information, a consumer's estimation on the probability may be converged with the expected risk level, which could be called the 'rational expectation.' In this situation the probability of product failure can be lowered under the strict liability with contributory negligence. Additionally, it is possible to reduce the probability of product failure when a legal rule that imposes liability on cheapest cost avoider is admitted.

Analysis of Failure in Product Design Experiments by using Product Data Analytics (제품자료 분석을 통한 제품설계 실험 실패 요인 분석)

  • Do, Namchul
    • Journal of Korean Institute of Industrial Engineers
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    • v.40 no.4
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    • pp.366-374
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    • 2014
  • This study assessed and analysed a result of a product design experiment through Product Data Analytics (PDA), to find reasons for failure of some projects in the experiment. PDA is a computer-based data analysis that uses Product Data Management (PDM) databases as its operational databases. The study examines 20 product design projects in the experiment, which are prepared to follow same product development process by using an identical PDM system. The design result in the PDM database is assessed and analysed by On-Line Analytical Processing (OLAP) and data mining tools in PDA. The assesment and analysis reveals the lateness in creation of 3D CAD models as the main reason of the failure.

A Study on the Application of DFMEA for Safety Design of Weapon System (무기체계의 안전 설계를 위한 DFMEA 적용에 관한 연구)

  • Seo, Yang Woo;Oh, Young Il;Kim, Hee Wook;Kim, So Jung
    • Journal of the Korean Society of Systems Engineering
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    • v.18 no.1
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    • pp.46-57
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    • 2022
  • In this paper, we proposed the DFMEA Implementation Method for safety design of Weapon System. First, we presented the process for DFMEA. And then, the case analysis of OOO missile was performed in accordance with the process presented. After defining the system requirements of OOO missile, failure definition scoring criteria was set. In order to clarify the definition of failure, the failure was classified into safety, reliability, maintainability and others. After performing the function analysis, the relationship matrix analysis was performed to identify the failure mode according to the function without omission. After clarifying the failure classification, mode of failure, cause of failure and effect were analyzed to calculate the severity, occurrence and detection values. After the action priority was judged, the recommended action according to the failure classification was identified for the determined action priority. The results of this study can be used as a relevant basis for the design reflection and resource re-allocation of stakeholders.

An Empirical Study on Managerial Factor for the New Product Development Using Failure Case (신제품 개발을 위한 관리요인에 관한 실증적 연구 - 실패제품을 중심으로 -)

  • 이재하
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.20 no.41
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    • pp.113-122
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    • 1997
  • The purpose of this study is to extract managerial factor into each cell which is classified by the characteristic area of new products. For this purpose, the characteristic area of new products is classified by which is Needs & Seeds Basis. The focus of this study is on examination of failure factors, which have an important effect upon new product failure. The variables for this study were selected from literature survey and pre-interview was implemented specially. The subject of study was project leaders of electronics industry where have taken the leading part in product development activities in Korean manufacturing industries. Enquete survey was conducted in each firm and project managers were asked to respond to 37 questions. Conclusion of this study based on many significant results gained by the various multi-variated analysis are summarized as follows. First, it can be noted that failure factors are different by each classified model and characteristic area of a new product. Second, it has been identified that the important factors for the new product development were technical & managerial support and it's ability, namely, the crucial factors of failure product were lacking in ability of technical development and R&D management system construction.

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An Approach of Combining Failure Physics and Lifetime Analysis for Product Reliability Improvement: An Application to BGA(Ball Grid Array) Package (고장물리와 수명분석을 이용한 제품신뢰도 개선: BGA(Ball Grid Array) 패키지에 대한 사례연구를 중심으로)

  • Lee, K.T.;Shin, C.H.;Hahn, H.S.;Evans, J.W.;Kim, S.W.;Lee, H.J.
    • Journal of Korean Institute of Industrial Engineers
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    • v.25 no.2
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    • pp.204-216
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    • 1999
  • Failure physics and statistical lifetime analysis constitute the two extreme ends of the reliability engineering spectrum, and studies that relate failure mechanisms to failure distributions have been near non-existent. This paper is an attempt to stimulate interest to fill the gap between the two extremes and proposes an approach of combining them through i) developing a failure mechanism model, ii) generating failure times by Monte Carlo simulation with the model, iii) deriving the failure time distribution and evaluating the product reliability, and iv) improving the product reliability by the sensitivity analysis. An application of the proposed approach to the BGA(Ball Grid Array) surface mount package is also provided.

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Quality, Product Quality, and Market Share Increase: A Perspective for Management Decisions

  • Ryu, Dongsu
    • International Journal of Reliability and Applications
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    • v.2 no.3
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    • pp.161-187
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    • 2001
  • Starting with the meaning of the word quality, diverse concepts connoted by the term are examined. Instead of a bathtub curve, the desirable shape of a failure rate covering the entire life of a good product, which might be called hockey-stick line, is introduced. From the hockey-stick line and the definition of reliability, two measurements are extracted. The terms reliability, failure rate, product life, and durability are explained. From the customer's standpoint, the concept of product quality is classified in five factors, according to related technology: performance, reliability, conformance to specifications, customer perception, and fundamentals advantage. The correlation of the five factors for a first-class product is discussed, Since the market share of a company is determined as the competition result of its product value, defined as product quality and price, the market share increase is derived mathematically from the increment of product value. The market share increase, $\Delta$S, can be calculated from the present market share, S, and the oriented relative value increment of new product, R, to the current product in the same company for the same market target: $\Delta$S : $\Delta$(1-S). R/(1+S.R). Finally, the importance of separating warranty cost from the profit equation for the durables is explained.

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Analysis of a New Product Failure by the Use of Root Cause Analysis and Fault Tree Analysis: The Case of Samsung Galaxy Note7 (근본원인분석과 고장수목분석 기법을 활용한 신제품 실패 분석: 삼성 갤럭시노트7 사례를 중심으로)

  • Jung, Won-Jun;Ham, Dong-Han
    • Journal of Digital Convergence
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    • v.15 no.8
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    • pp.69-83
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    • 2017
  • This study aims to analyze the causes of a new product failure by using system safety methods, focusing on the case of Samsung Galaxy Note7. However, when analyzing the causes of a product failure, if only technical problems are too emphasized, it is likely to miss other more meaningful causes of a failure. Thus, we claim that the root causes of a product failure should be identified in a broad perspective of integrated systems that include non-technical as well as technical elements. With this viewpoint, we investigated the failure of Samsung Galaxy Note7, by using Root Cause Analysis(RCA) and Fault Tree Analysis (FTA). The results showed that it is necessary to address not only the technical issues but also other non-technical issues, such as a very impetuous launch of a new product due to a very tough competition in the market. Additionally, we also found that RCA and FTA could be a useful tool for analyzing the causes of a new product failure from the viewpoint of an integrated system comprising technical and management elements.