• 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.

• Korean Journal of Construction Engineering and Management
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• v.12 no.3
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• pp.101-111
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• 2011

Clients ought to Appropriate the cost of quality management for contractors based on Construction Technology Management Act. The costs of safety management and environment reservation are separately estimated. and the quality management cost is added up to secure the construction quality required on sites. However, the sufficient cost for quality management was not allowed to the contractors, due to the viewpoints of the clients that the quality management should be one of the duties of contractors. In addition, an Account-related legislation enacted a provision of the labor cost of quality management as the one that should be included in the indirect labor cost. From the continuous survey the quality management cost is currently estimated by 0.2% of the total project cost and the contractors protest the portion of the quality management cost is insufficient. Thus, this paper aimed to provide the bases of estimation of the actualized quality management cost considering the viewpoint of contractors.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.34 no.3
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• pp.71-78
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• 2011

This parer proposes application of quality costing system in quality improvement area. Cost of quality in quality improvement area provides a valuable of both providing the need for improvement and giving a starting point for project. WQCMS(Web-based Q-Cost Management System) have ability to collect and analyze quality data generated from various different departments in the inside or outside of the enterprise without any limitations, if end-users are able to access wide area network. It provides the capability to integrate quality information from database and to generate various easy analysis reports to management's needs using built-in analysis tool modules with real-time. Web-based quality cost management system to measure the performance of quality improvement activities in the business firms. This paper proposes standard model for quality cost process in quality improvement area.

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

• Journal of the Korea Safety Management & Science
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• v.14 no.1
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• pp.189-200
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• 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 Korean Society of Industrial and Systems Engineering
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• v.35 no.3
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• pp.148-154
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• 2012

The purpose of this study is to develop measurement items for quality cost in service industries. Quality cost is necessary in order to evaluate quality management activities. It is clear that the quality cost in service industry is different from manufacturing industry. Generally, in service industries, quality cost is very difficult to assess because it has a unique characteristics. This paper proposes an effective method for measuring quality cost in service industries. Based on the PAF (Prevention, Appraisal, Failure) cost model, we utilizes the concept of five demensions in SERVQUAL which are tangibles, reliability, responsiveness, assurance, empathy. This paper also presents to a standard model for quality cost measurement in service industries.

• Proceedings of the Korean Society for Quality Management Conference
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• 1998.11a
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• pp.667-672
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• 1998

This Paper is to describe about new concept of the hidden cost of quality and through two cases plastic bottle manufacturing to explain how to find out it. Generally, the hidden quality cost does not show in the accounting record, but some time can find in the data of cost accounting or management accounting. How to combine between the hidden quality cost and the accounting method is discussed in the conclusion.

• Journal of the Korea Safety Management & Science
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• v.13 no.2
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• pp.179-184
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• 2011

This study contain below two contents. First, this study analyse an effect of consciousness of the quality cost for quality cost activity. Second, this study analyse an effect of quality cost activity for productivity improvement. The empirical result of this study is meaning that quality cost consciousness effects productivity improvement by quality cost activity. Therefore, this paper emphasize consciousness of quality cost for productivity improvement.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.24 no.63
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• pp.89-99
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• 2001

This paper proposes assessment of quality management activities based on cost of quality. Cost of quality is considered prevention cost, appraisal cost, internal failure cost, external failure cost in this paper. This paper shows quality cost magement system in thermal power site devision according to activity analysis. Cost of quality in power industries provides a valuable method of both proving the need for improvement and giving a starting point for projects.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.27 no.3
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• pp.97-105
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• 2004

The purpose of this study is to design and implement web-based quality cost management system to measure the performance of quality improvement activities in the business firms. The designed web-based quality cost management system which is also known as WQCMS (Web-based Q-Cost Management System) utilized newly classified objective performance indicator items to measure quality related activities. Well-classified performance measurement Indicator item lists which are played key role in the system was researched and standardized according to size and business categories of enterprise. Its code standards are based from fundamental PAF Model. Developed WQCMS have ability to collect and analyze quality data generated from various different departments in the inside or outside of the enterprise without any limitations, if end-users are able to access wide area network. It provides the capability to integrate quality information from database and to generate various easy analysis reports to management's needs using built-in analysis tool modules with real-time. The proposed system was developed using Microsofi's .Net technology, ASP.NET and MS-SQL Server 2000. By web-enabling Q-cost management system, the effectiveness of the system management and utilization was realized by easiness of information Integration and economical efficiency.