• Title/Summary/Keyword: Quality Management Cost

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A Study on the Rectifying Inspection Plan & Life Test Sampling Plan Considering Cost (소비자 보호를 위한 선별형 샘플링 검사와 신뢰성 샘플링 검사의 최적설계에 관한 연구)

  • 강보철;조재립
    • Journal of Korean Society for Quality Management
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    • v.30 no.1
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    • pp.74-96
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    • 2002
  • The objectives of this study is to suggest the rectifying sampling inspection plan considering quality cost. Limiting quality level(LQL) plans(also called LTPD plans) and outgoing quality(OQ) plans are considered. The Hald's linear cost model is discussed with and without a beta prior for the distribution of the fraction of nonconforming items in a lot. It is assumed that the sampling inspection is error free. We consider the design of reliability acceptance sampling plan (RASP) for failure rate level qualification at selected confidence level. The lifetime distribution of products is assumed to be exponential. MIL-STD-690C and K C 6032 standards provide this procedures. But these procedures have some questions to apply in the field. The cost of test and confidence level(1-$\beta$ risk) are the problem between supplier and user. So, we suggest that the optimal life test sampling inspection plans using simple linear cost model considering product cost, capability of environment chamber, environmental test cost, and etc. Especially, we consider a reliability of lots that contain some nonconforming items. In this case we assumed that a nonconforming item fail after environmental life test. Finally, we develope the algorithm of the optimal sampling inspection plan based on minimum costs for rectifying inspection and RASP. And computer application programs are developed So, it is shown how the desired sampling plan can be easily found.

An Economic Life Test Sampling Plan for Repairable Products with Exponential Interfailure Time Distribution

  • Kwon, Young Il
    • Journal of Korean Society for Quality Management
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    • v.21 no.1
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    • pp.108-120
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    • 1993
  • In this article an economic life test sampling plan is considered for repairable products when the products in each lot have the same interfailure time distribution, but the mean time between failure (MTBF) of a lot varies from lot to lot according to a known prior distribution. A cost model is constructed which consists of test cost, accept cost, and reject cost. Determination of the optimal plan which minimizes the expected average cost per lot is discussed. Numerical examples are presented to illustrate the use of the proposed sampling plans and sensitivity analyses for parameters of the prior distribution are performed.

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A Study on Education Service Quality's Expected Loss Evaluation Model with Potential Customer Satisfaction Improvement Index (잠재적고객요구개선지수를 이용한 교육서비스품질 기대손실평가 모형에 관한 연구)

  • Chang, Yong-Hyuk;Cho, Yu-Jin;Kang, Kyung-Sik
    • Journal of the Korea Safety Management & Science
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    • v.21 no.2
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    • pp.15-23
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    • 2019
  • Among service industries of knowledge based economic era, the roles of educational service field are becoming more important and standard of educational service makes a direct effect on economic development and social growth. Therefore, accurate measurement of service quality is the most important assignment and the measurement of the service quality remains difficult assignment. So, this researcher classified quality attributes applying weighted value and found potential satisfaction level(PSL) and potential customer demand improvement index(PCDI) for trainees participating in national manpower business so as to suggest measurement of service quality and easiness of use and then, calculated satisfaction position and opportunity cost by quality factor with Taguchi's loss fraction. And, improvable satisfaction level was measured, opportunity cost by degree of customer dissatisfaction was quantitatively measured, and a model that can indicate with economic factors was suggested. In addition, methodology of measuring quality cost that can be reduced by quality improvement and direction of strategic decision-making for deciding items to be improved preferentially were suggested with qualitative index that can indicate the degree of customers' dissatisfaction by loss.

Improvement of Personnel Cost and Placement Scale of Quality Manager for Construction (건설공사 품질관리자의 인건비 및 배치규모 개선)

  • Lee, Chang-Hyo;Kim, Byung-Soo
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.38 no.2
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    • pp.327-335
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    • 2018
  • In order to calculate the quality management cost of construction work, the process must conform to relevant laws and regulations. In details, the cost of the various items such as quality test fee and quality control activity cost are required to be calculated. Regarding the quality management costs, the labor cost is applied to the quality examination fee and the calculation unit quantity in the construction quality management duties. The application of the unit price of the labor cost stipulates that Construction Association of Korea and Korea Engineering & Consulting Association apply the unit price which is surveyed and published. However, in the related laws and regulations, the standard of the quality manager and quality tester is not clear. This accounts for the confusion in the cost of construction management and the cost of labor. In the current law, the allocation standard of quality control personnel is specified according to the size of the construction, but the standard of placement of quality testers is not specified. At the construction site, there is no assignment criteria manpower for quality testers except quality managers, or very little work is being done. The quality control personnel conducts the quality test work to be carried out by the quality tester, and this carrying out heavy work. Therefore, it is difficult to maintain quality control activities. In this study, the labor cost of quality management expenses and the allocation criteria of quality managers and quality testers are established and presented for the purpose of securing the quality of the construction work and preventing the construction work. It is stipulated that the standards of the relevant laws and regulations, which are not clear, should be classified into quality control personnel and quality testers according to the size of the construction. Based on the unit price of Korea Engineering & Consulting Association, the personnel expenses of quality managers and quality testers are proposed to apply the unit price of engineer (professional engineer, specialist, advanced, intermediate, beginner) and skilled technicians (advanced, intermediate, beginner).

Six Sigma and the Cost of(Poor) Quality

  • Aca;U, Jichao-X
    • International Journal of Quality Innovation
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    • v.3 no.2
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    • pp.159-173
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    • 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.

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.

Cost Behavior of Private University Hospital in Korea (사립대학병원의 원가행태)

  • Choi, Hwang-Gyu;Hwang, In-Kyoung
    • Korea Journal of Hospital Management
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    • v.11 no.3
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    • pp.73-93
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    • 2006
  • This study aims at providing necessary informations for management decision-making to the hospital manager, such as ratios of fixed and variable cost to total operating expense, and variable cost ratio to operating revenues, and determinant factors affecting cost behavior. A study model and related hypotheses were established, data were collected from 41 private university hospitals for the 6years from 1998 to 2003, and regression analyses were performed to test the hypotheses. The results of the analyses and conclusions are as follows; First, labor cost and administration cost within the same number of beds have not only fixed quality of the cost, but variable quality of that. Also, the ratio of the variable costs to operating revenue of the metropolitan was estimated 76.9% and that of other area hospitals was 80.1%. Second, the major factors affecting the increase rate of the operating expense were the increase rates of the number of inpatients, the number of employee, and the number of hospital operating bed. This result implies that maintaining a optimal hospital bed size and efficient operation of the beds are important strategic factors of hospital management.

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A Study on the Optimization of Quality Cost for Product Liability (제품책임(製品責任)을 위한 품질비용(品質費用) 최적화(最適化)에 관한 연구(硏究))

  • Go, Bok-Su;Jo, Nam-Ho
    • Journal of Korean Society for Quality Management
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    • v.18 no.1
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    • pp.116-128
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    • 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.

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Ordering Policy for Planned Maintenance with Salvage Value

  • Park, Young T.;Jing, Sun
    • International Journal of Quality Innovation
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    • v.7 no.3
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    • pp.15-23
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    • 2006
  • A spare ordering policy is considered for planned maintenance. Introducing the ordering, uptime, downtime, inventory costs and salvage value, we derive the expected cost effectiveness. The problem is to determine jointly the ordering time for a spare and the preventive replacement time for the operating unit which maximize the expected cost effectiveness. Some properties regarding the optimal policy are derived, and a numerical example is included to explain the proposed model.