• Title/Summary/Keyword: Quality Management Cost

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Quality-Sustainable Way to Business Excellence

  • Kondo, Yoshio
    • International Journal of Quality Innovation
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    • v.3 no.2
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    • pp.1-12
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    • 2002
  • Quality is distinguished from the other important management indicators, cost and profitability, by the features of its far longer history and of common concern to both manufacturer and customer. We may say from this that quality has a far more human aspect than either cost or profitability. We stress the importance of establishing “quality culture.” But we do not commonly use the terms of “cost culture” or “productivity culture.”In addition, we know from our experiences that improving quality by creative methods can lead to lower cost and higher productivity, although the converse is not necessarily true. In the Maslow's hierarchy of human needs, it is known that the character of human needs changes from extrinsic and material ones at lower levels to intrinsic and mental or spiritual ones at higher levels. We know from our experience that employee satisfaction is closely linked with quality, which is of more human nature and can further be deployed into the detailed elements of quality. The leaders and managers should positively display leadership and respond to the efforts of the subordinates. Without these managerial leadership and efforts, it is almost impossible to provide essential and true customer satisfaction. They are the indispensable elements for business excellence.

ANALYSIS AND IMPROVEMENT OF FINISHING WORK PROCESS FOR COST MANAGEMENT (FOCUSED ON INDOOR FINISHING WORK OF APARTMENT)

  • Hoon-Ku Lee;Yoon-sun Lee;Ja-Young Yoon;Jae-Jun Kim
    • International conference on construction engineering and project management
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    • 2007.03a
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    • pp.711-720
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    • 2007
  • Apartment housing in the Korean domestic construction industry has had various and high-quality finishing work since the enforcement of price deregulation in 1998. Before the enforcement of price deregulation, feasibility studies of housing projects have not had particular difficulties as uniform description of finishing work items were reflected and finishing work cost also was equalized. However, the recent distinction of finishing work based on the same floor plan brings about project cost variation, along with many effects on construction management due to project cost increment. Accordingly, this paper suggests the improved plan of cost management to control the feasibility study result consistently during the life cycle of a project through an analysis based on cost management phase due to cost blackout, appearing at the commencement of a project, cost gradation caused by high-quality finishing work item, and cost reduction due to the degradation of finishing work after analysis of current apartment construction process focused on finishing work using the IDEF process analysis technique.

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A Study on the Comparison of the Economics of Manual Assembly Process (수공조립공정(手工組立工程)의 경제성(經濟性) 비교(比較)에 관한 연구(硏究))

  • Jo, Jae-Ip
    • Journal of Korean Society for Quality Management
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    • v.10 no.2
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    • pp.10-17
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    • 1982
  • Three different manual assembly techniques are evaluated by relating the effects of component quality to the total cost of the product. The results show that the choice of the scrapping or repairing the defective products or alternatively, salvaging the acceptable parts, may effect the total product cost by as much as 400 per cent. This paper emphasizes the need for accurate control quality of parts in assembly if low-cost manufacture is to be achieved.

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Establishment of QC Target based on Quality Cost

  • Lee, Dong-choon;Kim, Jeong-mann;Hong, Sung-ill;Park, Yeong-ho
    • Journal of Korean Society for Quality Management
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    • v.16 no.1
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    • pp.59-66
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    • 1988
  • On-line QC by Taguchi has two approaches of: the cost-oriented (cost-emphasis) QC and the process-oriented (quality-emphasis) QC. The main concern of this paper is to estabilish and recommend a desirable one as a QC target. Simulation is employed to solve the question, and the failure cost (A), appraisal cost (B), and prevention cost (C) are adopted as decision variables. In conclusion, the process-oriented QC is the recommendable approach as far as there is no remarkable cost difference between the two approaches and possible to apply on.

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Halal Orientation Strategy(HOS) Reinforces to Positive Results on Quality, Time, Cost Control and Flexibility among Halal Food Manufacturers in Malaysia Context

  • Talib, Zunirah Md;Kassim, Normalini Md;Zainuddin, Yuserrie
    • Asia-Pacific Journal of Business
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    • v.9 no.2
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    • pp.15-37
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    • 2018
  • The purpose of this paper was to explain on the conceptualisation of the Halal Orientation strategy (HOS) based on operation strategy perspective. The four variables constitute in HOS are staffing, materials, production process and storage together with transportation. By focusing on HOS, the manufacturers reinforce improvement in quality, cost control, time and flexibility of the production Halal food industry in Malaysia which is the performance objective of market competitiveness in Malaysia context. A self-administered questionnaire was designed and used to assess the significant of HOS that lead to improve quality, cost control, reduction in time and the flexibility among Halal food manufacturers in Malaysia. From a total of 443 Halal food manufacturers were involved in this study, only 137 respondents are usable for this research. The study showed significant results for the manufacturers to focus in Halal Orientation strategy (HOS) which have positive impacts on quality, cost control, time and flexibility. This research aimed to measure the HOS among food firms in Malaysia and to determine HOS in relation with the performance objective of operational outcomes.

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The empirical study on e-learning quality and its relevant constructs (이러닝 품질과 관련 변인에 대한 실증연구)

  • Lee, Misook
    • Journal of Korean Society for Quality Management
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    • v.45 no.4
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    • pp.917-932
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    • 2017
  • Purpose: This study aims to identify the most important quality construct among system quality, information quality, and service quality, which are integrated as the second-order construct; perceived quality, and to investigate the relationship between perceived quality, learner satisfaction, learner enjoyment, switching cost, and learner loyalty. Method: Data were collected from learners who had taken e-learning course, and the analysis was conducted in two phases. The first phase described demographic characteristics using SPSS23.0; the second phase involved the second order CFA of perceived quality and the analysis of measurement model and structural model through AMOS 23.0. Results: (1) The explanatory power of system quality, information quality, and service quality appears to be almost equal; (2) Perceived quality positively influences only both learner satisfaction and switching cost; (3) Only learner satisfaction positively influences learner loyalty and switching cost negatively influences learner loyalty. Conclusion: Learner enjoyment does not play an important role in this study, which could be extrapolated in regard to the characteristics of sample. The respondents are over high school students, who emphasize on the acquisition of knowledge rather than enjoyment. Additionally, the result implies that respondents show low loyalty in the high switching cost.

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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Economic Evaluation Analysis of Effect of Train Freight Car Safety Transport Integrated Quality Management System Based on Internet of Things(IoT) (IoT기반 철도 화차 안전운송 통합 품질관리시스템에 관한 경제성 평가지표 분석)

  • Won, Jong-Un;Yoon, Chiho;Park, Sang-Chan
    • Journal of Korean Society for Quality Management
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    • v.44 no.4
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    • pp.869-881
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    • 2016
  • Purpose: The objective of this study is to verify the economic validation of quality management integrated train freight car by analyzing economic evaluation indicators such as benefit and cost, net present value, and inter rate of return. Methods: First, we itemize benefit and cost field by reviewing literatures; Benefit consists of 1)Safety, 2)Operation, and 3)Maintenance; Cost consists of 1)Set-up fee, 2)Wireless internet fee, and 3)Cloud storage using fee. Second, based on these estimated values, we conduct an economic evaluation analysis. Among them, benefit and cost, net present value, and internal rate of return are selected. Results: As a result, all estimated values are highly over criterion of economic validity($$B/C{\geq}_-1$$, $$NPV{\geq}_-0$$, $$IRR{\geq}_-R$$); 1)benefit over cost ratio is 28.22, 2)Net present value is 8,121.66million KRW, and 3)Internal rate of return value is 2272%. Conclusion: The findings of this study will help making a decision when train industry adopts IoT technology for improving the effectiveness.

A Minimum Cost Model for Merging Production Process with Final Product Quality Constraints (최종품질제약하의 병합공정을 갖는 생산라인의 최소비용 모형)

  • 이경록;박명규
    • Journal of the Korea Safety Management & Science
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    • v.5 no.4
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    • pp.169-185
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    • 2003
  • Recently many researchers contributed to the understanding of Quality Control System, but the use of economics in the design of quality assurance system is limited in treatment of the relationship between the average incoming quality level (or average process quality level) of the incoming lot and the average outgoing quality level of this lot. In this study, a traditional concept of sampling inspection plan for the quality assurance system is extended to a consideration of economic aspects in total production system by representing and analyzing the effects between proceeding and succeeding production process including inspection process. This approach recognizes that the decision at each manufacturing process (or assembly process), is to be determined not only by the cost and the average outgoing quality level of that process, but also by the input parameters of the cost and the incoming quality to the succeeding process. By analyzing the effects of the average incoming and outgoing quality, manufacturing or assembly process quality level and sampling inspection plan on the production system, mathematical models and solution technique to minimize the total production cost for a general product manufacturing system with specified average outgoing quality limit are suggested.

Cost Estimation for ISO 9000 Certification in Japanese Companies

  • Yamada, Shu
    • International Journal of Quality Innovation
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    • v.2 no.1
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    • pp.117-128
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    • 2001
  • It is widely recognized that ISO 9000 certification bring some profits, such as enhancement of quality system and some concerns. Since one of the major concerns is cost for certification, this paper considers the cost for ISO 9000 certification in Japanese companies through review some winning reports and case studies. Specifically, a model that describes the certification activities and their cost is derived through reviewing some winning reports in order to give a framework of cost estimation. Based on the model, we estimate the certification cost in an electric division of a company through an interview survey. Furthermore, we focused on the cost for promotion and administration as a cost for the sake only certification, because these activities will not be needed if a company does not implement ISO certification. It is concluded that this cost may vary approximately 300,000-700,000 (US$) per certification by the interview and telephone surveys to Japanese steel companies.

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