• Title/Summary/Keyword: cost of quality

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A Method of Evaluation Quality Cost in AMS (AMS에 있어서 품질비용평가 방법)

  • 하정진;황규완
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.16 no.28
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    • pp.129-135
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    • 1993
  • Quality is become not only the most critical component of manufacturing strategy but also the most critical measure of performance and justification of advanced manufacturing system. The objective of this paper is to offer classification & optimum concept of quality-cost and to illustrate a method of evaluation quality-cost then a case example is presented to illustrate the result of quantifying the suggested formula and these values are given to justify of management.

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On the Economics of Quality Improvement Activities

  • Won, You-Dong
    • Journal of Korean Society for Quality Management
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    • v.31 no.4
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    • pp.176-183
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    • 2003
  • The concept of cost of quality has become important economic measures of quality issues for several decades. Most of the research to date has focused on the problem and solution under static business conditions. However, some researchers have found that prevention cost of COQ is one of the expenses of investment and the payback will be shown by the improvement of product quality. These approaches have considered cost of quality issues based on a time factor. It means that there is a trade­off between prevention/appraisal costs and failure costs. Based on a capital budgeting approach, this research reviews the economics of quality improvement activities and proposes the decision criteria to justify quality improvement activities.

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

  • 김계완;김용필;박지연;윤덕균
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.26 no.1
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    • pp.7-16
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    • 2003
  • 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 quality control are very important to supply with a product uniformly and inexpensively. Process control is given much weight in the quality control in manufacturing system. Statistical process controls(SPC) that are used in process generally have major impact on manufacturing, product design activities, and process development potentially. Control charts in statistical process control method can be interpreted the data from quality characteristics in production process and discriminated between chance variation and assignable variation in process. In addition, control chart can be used to monitor the process output and detect when changes in the inputs are required to bring the process back to an in-control state. The models that relate the influential inputs to process outputs help determine the nature and magnitude of the adjustments required. 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.

Comparative Analysis on the Characteristics of High Cost Medical Users between the Health Insurance and Medical Assistance Program (고액진료비 환자의 특성 비교분석 - 의료보험과 의료보호환자를 중심으로 -)

  • Kang, Sunny;Moon, Ok-Ryun
    • Quality Improvement in Health Care
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    • v.2 no.2
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    • pp.112-129
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    • 1996
  • Background : A small number of high cost patients usually spend a larger proportion of scarce health resources. Aged, long-term care and readmitted patients usually belong to these high cost patient group. Among others, long length of stay and readmission can be reduced by checking its cause, and these are the areas needed most of quality improvement activity. Characteristics of high cost medical users between health insurance program and medical assistance program were reviewed. Methods : The inpatient claims of health insurance and medical assistance program were analyzed. Patients were divided by 6 groups; long-term, mid-term, short-term, readmitted, cancer and aged. We defined high cost patients as those who had spent one and half million won and over per 6 months. Characteristics of high cost patients for each group were reviewed. Results : medical assistance patients used much more resources than the insured members in the average hospital cost per case but less in daily hospital cost. The former had a longer length of stay and had much heavier diseases. Major diseases of both group were cancer, diseases of circulatory system and chronic degenerative diseases. Gallstone and schizophrenia were more in the insured program. However, pulmonary tuberculosis, asthma were more common among the medical assistance patients. Early readmission before 2 weeks were 28-30% of the total readmission. Readmission rate in the malignat neoplasm and renal failure were 80% and more. Q.A program should be installed to prevent unnecessary readmissions. Conclusion : Almost 30% of early readmissions and admissions due to complications and long length of stay should be reviewed carefully to keep cost down and to enhance the quality of hospital care.

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OPTIMIZING QUALITY AND COST OF METAL CURTAIN WALL USING MULTI-OBJECTIVE GENETIC ALGORITHM AND QUALITY FUNCTION DEPLOYMENT

  • Tae-Kyung Lim;Chang-Baek Son;Jae-Jin Son;Dong-Eun Lee
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.409-416
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    • 2009
  • This paper presents a tool called Quality-Cost optimization system (QCOS), which integrates Multi-Objective Genetic Algorithm (MOGA) and Quality Function Deployment (QFD), for tradeoff between quality and cost of the unitized metal curtain-wall unit. A construction owner as the external customer pursues to maximize the quality of the curtain-wall unit. However, the contractor as the internal customer pursues to minimize the cost involved in designing, manufacturing and installing the curtain-wall unit. It is crucial for project manager to find the tradeoff point which satisfies the conflicting interests pursued by the both parties. The system would be beneficial to establish a quality plan satisfying the both parties. Survey questionnaires were administered to the construction owner who has an experience of curtain-wall project, the architects who are the independent assessor, and the contractors who were involved in curtain-wall design and installation. The Customer Requirements (CRs) and their importance weights, the relationship between CRs and Technical Attributes (TAs) consisting of a curtain-wall unit, and the cost ratios of each components consisting curtain-wall unit are obtained from the three groups mentioned previously. The data obtained from the surveys were used as the QFD input to compute the Owner Satisfaction (OS) and Contractor Satisfaction (CS). MOGA is applied to optimize resource allocation under limited budget when multi-objectives, OS and CS, are pursued at the same time. The deterministic multi-objective optimization method using MOGA and QFD is extended to stochastic model to better deal with the uncertainties of QFD input and the variability of QFD output. A case study demonstrates the system and verifies the system conformance.

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Evaluation of Cost-Effectiveness of Medical Nutrition Therapy : Meta-Analysis (메타분석을 이용한 임상영양서비스의 비용-효과성 평가)

  • 김현아;양일선;이해영;이영은;박은철;남정모
    • Journal of Nutrition and Health
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    • v.36 no.5
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    • pp.515-527
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    • 2003
  • Objectives: A meta-analysis of the literatures was conducted to evaluate the cost-effectiveness of medical nutrition therapy by dietitians. Methods : The 30 studies were identified from a computerized search of published research on MEDLINE, Science-Direct and the PQD database until May, 2002 and a review of reference lists. The main search terms were“dietitian”,“dietary intervention”,“nutrition intervention”, “cost”,“cost-effectiveness”and“cost-benefit analysis”. The subgroup analysis was performed by publication year, study design, intervention provider, type of patient (in/out-patient) and type of cost (total cost/direct cost). Two reviewers independently selected trials for inclusion, assessed the quality and extracted the data. Results : The 30 studies were identified using the electric database search and bibliographies. The 17 trials were eligible for inclusion criteria, then the systematic review and a meta-analysis were conducted on effectiveness and cost-effectiveness of medical nutrition therapy. The quality of the studies was evaluated using the quality assessment tool for observational studies. The quality score was 0.515 $\pm$ 0.121 (range : 0.279-0.711, median : 0.466). The meta-analysis of 17 studies based on the random effect model showed that medical nutrition therapy was highly effective in treating the diseases (effect size 0.3092 : 95% confidence interval 0.2282-0.3303). The vote-counting method, one of meta-analysis methods, was applied to evaluate the cost-effectiveness of medical nutrition therapy conducted by dietitians. Two criteria (method 1, method 2) for voting were used. The calculated p-values for method 1 (more conservative method) and method 2 (less conservative method) were 0.1250 and 0.0106, respectively. Medical nutrition therapy by dietitians was significantly cost-effective in the method 2. Conclusion. This meta-analysis showed that the effectiveness of medical nutrition therapy was statistically significant in treating disease (effect size 0.3092), and that the cost-effectiveness of medical nutrition therapy was statistically significant in the method 2 (less conservative method) of vote counting. (Korean J Nutrition 36(5): 515~527, 2003)

The Problem of the Quality of the Predecessor Activity on the Time and Cost of the Successor Activity in the Project Schedule - Project Schedule with Resource Constraints - (프로젝트 일정에서 선행활동 품질이 후행활동의 시간과 비용에 미치는 문제 - 자원제약이 존재하는 프로젝트 일정문제 -)

  • Kim, Gab Sik;Bae, Byeong Man;Ahn, Tae Ho
    • Journal of Korean Society for Quality Management
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    • v.50 no.2
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    • pp.265-286
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    • 2022
  • Purpose: The time and cost of a project activity exists in a selected mode and there is a quality level for the selected mode, and the time and cost of the current activity is determined by the quality level of the preceding activity. When an activity is a predecessor activity of an activity, it is characterized as a trade-off problem in which the time and cost of the activity are determined according to the quality level of the activity. Methods: A neighbor search heuristic algorithm obtains a solution by (1) randomly determining the mode, quality level, and assignment order for each activity. (2) get a solution by improving the solution by changing the possible modes and quality levels; (3) to find a solution by improving the solution from the point where it is feasible to advance the start time. Here, Case[1] is a method to find the optimal solution value after repeating (1). Case [2] is a method for finding a solution including (1) and (2). Case [3] refers to a method for finding solutions including (1), (2), and (3). Results: It can be seen that the value of the objective function presented by the algorithm changes depending on how the model of the heuristic algorithm is designed and applied. In other words, it suggests the importance of algorithm design and proves the importance of the quality problem of activities in the project schedule. Conclusion: A study significance of the optimization algorithm and the heuristic algorithm was applied to the effect of the quality of the preceding activity on the duration and cost of itself and the succeeding activity, which was not addressed in the project schedule problem.

A Study on the River Water Quality Management Model using Genetic Algorithm (유전알고리즘을 이용한 하천수질관리모형에 관한 연구)

  • Cho, Jae-Heon;Sung, Ki-Seok
    • Journal of Korean Society of Water and Wastewater
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    • v.18 no.4
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    • pp.453-460
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    • 2004
  • The objective of this research is to develop the water quality management model to achieve the water quality goal and the minimization of the waste load abatement cost. Most of existing water quality management model can calculate BOD and DO. In addition to those variables, N and P are included in the management model of this study. With a genetic algorithm, calculation results from the mathematical water quality model can be used directly in this management model. Developed management model using genetic algorithm was applicated for the Youngsan River basin. To verify the management model, water quality and pollution source of the Youngsan River had been investigated. Treatment types and optimum treatment costs of the existing and planned WWTPs in the baisn were calculated from the model. The results of genetic algorithm indicate that Kwangju and Naju WWTP have to do the advanced treatment to achieve the water quality goal about BOD, DO and TP. Total annual treatment cost including the upgrade cost of existing WWTPs in the Youngsan River basin was about 50.3 billion Won.

Decision of Producer's Specification Limits Considering Types of Loss Function (손실함수의 형태를 고려한 생산자 규격한계의 결정)

  • Kim, Dong-Hyuk;Chung, Young-Bae
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.41 no.3
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    • pp.145-153
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    • 2018
  • Taguchi regarded the concept of quality as 'total loss to society due to fluctuations in quality characteristics from the time of supplied to the customer.' The loss function is a representative tool that can quantitatively convert the loss that occurs due to the deviation of the quality characteristic value from the target value. This has been utilized in various studies with the advantage that it can change the social loss caused by fluctuation of quality characteristics to economic cost. The loss function has also been used extensively in the study of producer specification limits. However, in previous studies, only the second order loss function of Taguchi is used. Therefore, various types of losses that can occur in the process can't be considered. In this study, we divide the types of losses that can occur in the process considering the first and second loss functions and the Spiring's reflected normal loss function, and perform total inspection before delivering the customer to determine the optimal producer specification limit that minimizes the total cost. Also, we will divide the quality policy for the products beyond the specification limits into two. In addition, we will show the illustration of expected loss cost change of each model according to the change of major condition such as customer specifications and maximum loss cost.