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

• Industrial Engineering and Management Systems
• /
• v.8 no.3
• /
• pp.162-170
• /
• 2009

This paper deals with a closed-loop remanufacturing system with one manufacturer and one remanufacturer. The manufacturer sells new products bearing the 'Extended Producer Responsibility (EPR).' It is assumed that the manufacturer's collection rate of used products depends only on the buy-back cost, while that of the remanufacturer depends on the minimum allowed quality level of used products in addition to the buy-back cost. Through the development of mathematical models with the objective function of maximizing profit, we study an efficient operation policy of each party. The decision variables are the unit selling price of new products and remanufactured products, the unit buy-back cost of the used products of the manufacturer and remanufacturer, and the minimum allowed quality level. The validity of the model is examined through numerical examples and sensitivity analysis.

• Communications for Statistical Applications and Methods
• /
• v.13 no.3
• /
• pp.651-656
• /
• 2006

Wu and Clements-Croome (2005) investigate the optimization problem of PM policies for situations where the quality of PM is a random variable with a certain probability distribution. However, they assume that the cost of preventive maintenance is constant, not depending on the quality of PM. Thus, this paper considers a periodic PM model when PM cost depends on the quality of PM activity. The optimal PM policy are presented for the extended PM model and the numerical examples are presented for illustrative purpose.

• International Journal of Highway Engineering
• /
• v.19 no.5
• /
• pp.153-162
• /
• 2017

PURPOSES : This study was conducted to analyze the effects arising from extending the duration of nighttime road construction on improving road quality and durability. METHODS : Most previous studies estimating the social cost of various construction conditions did not consider road pavement cooling time as a factor in improving road pavement quality. This study investigated the feasibility of achieving higher road quality and durability by extending the duration of nighttime road construction time extension. For this investigation, the effects of such an extension on traffic conditions were analyzed based on micro-simulation studies and scenario-based cost-benefit analyses, using factors including traffic volume, delay, construction cost, and road pavement cooling time. RESULTS : The results of the traffic simulation studies and cost-benefit analyses indicate that the current road construction method that emphasizes completing nighttime road construction by 6 a.m. reduces pavement life while causing relatively little traffic delay. If the night construction time is instead extended to 2 p.m., road pavement lifetime is increased, reducing road re-construction cost. These savings are greater than the cost of congestion arising from extending the duration of nighttime construction. CONCLUSIONS : The current nighttime construction durations need to be extended in order to efficiently manage roads and reduce road management costs.

• Journal of the Korea Safety Management & Science
• /
• v.14 no.1
• /
• pp.189-200
• /
• 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 the Korea Safety Management & Science
• /
• v.5 no.4
• /
• pp.169-185
• /
• 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.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.21 no.48
• /
• pp.269-277
• /
• 1998

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 proceding/succeeding production process including inspection. This approach recognizes that the decision to be made at one manufacturing process (or assembly process) determine not only the cost and the average outgoing quality level of that process but also 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/assembly quality level and sampling inspection plan on the production system, mathematical models and solution technique to minimize the total production cost for a single product manufacturing system with specified average outgoing quality limit (AOQL) are suggested.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.21 no.46
• /
• pp.119-125
• /
• 1998

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 / succeeding production process including inspection. This approach recognizes that the decision to be made at one manufacturing process (or assembly process) determine not only the cost and the average outgoing quality level of that process but also 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 / assembly quality level and sampling inspection plan on the production system, mathematical models and solution technique to minimize the total production cost for a single product manufacturing system with specified average outgoing quality limit(AOQL) are suggested.

• Management Science and Financial Engineering
• /
• v.3 no.1
• /
• pp.57-74
• /
• 1997

An EOQ-like inventory model for a manufacturing process is studied. The system is assumed to deteriorate during the production process. The results are either the production of a number of defective items, or the breakdown of the production machine. The optimal production lot size is derived. The model is extended to the case in which the probabilities of making defective items and machine breakdowns are a function of both the quantity (amount) and quality (performance) of the consumed setup cost (including the preventive maintenance cost). We further assume that the setup performance can be improved by investing in the performance improvement program. Hence, the same or a better setup outcome can be achieved with a lower setup cost. We then investigate the optimal setup cost and investment policy simultaneously, thereby achieving a better process quality and setup cost reduction concurrently.

• The Transactions of the Korea Information Processing Society
• /
• v.1 no.2
• /
• pp.194-201
• /
• 1994

Recently, as application fields of software is extended, relative importance of software make a gradual increase and importance of development cost is being increased. However, as former evaluation model of development cost evaluate at the functional point of view for the most part, at this paper, I intend to propose evaluation model of software development cost COSMOS-Q(COSt MOdel for Subcontract-Quality) which one evaluate also in quality as well as function. The model proposed in this paper set the goal at software orderer evaluate software cost exactly with only order specification information. At this paper, I proposed cost evaluation model and evaluated it's validity refering to review result in ISO/SC7 about a software quality feature with extraction of quality feature factor which produce change of cost and set up the evaluation measure adoptable as order condition.