• Title/Summary/Keyword: Product cost

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Optimal Burn-in Time under Cumulative Pro-Rata Replacement Warranty

  • Yun, Won-Young;Lee, Yang-Woo;Chung, Il-Han;Luis Ferreira
    • International Journal of Reliability and Applications
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    • v.2 no.4
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    • pp.241-251
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    • 2001
  • In this paper, optimal bum-in time to minimize the total mean cost, which is the sum of manufacturing cost with burn-in and cumulative warranty-related cost, is obtained. When the products with cumulative pro-rata warranty have high failure rate in the early period (infant mortality period), a burn-in procedure is adopted to eliminate early product failures. After burn-in, the posterior product life distribution and the warranty-related cost are dependent on burn-in time; long burn-in period may reduce the warranty-related cost, but it increases the manufacturing cost. The paper provides a methodology to obtain total mean cost under burn-in and cumulative pro-rata warranty. Property of the optimal burn-in time is analyzed, and numerical examples and sensitivity analysis are studied.

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Estimation of Manufacturing Time for Machined Parts (절삭가공물의 생산 시간 추정)

  • Kim, Kang
    • Transactions of the Korean Society of Machine Tool Engineers
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    • v.12 no.4
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    • pp.1-8
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    • 2003
  • It is well known that design cost is only about 5% of final product cost but over 70% of it is determined during design stage. Earlier in the product design and development cycle the design changes occur, more economic they become. Therefore, it is recommended that the manufacturing time and cost of product are considered in steps involved in designing and manufacturing a product as early as possible. In this study, it is proposed a possible way that cm be available for estimating manufacturing time of parts, which are manufactured by conventional material removal processes (e.g. turning, milling and drilling). For it to be useful in the early design stage, the minimum number of informations on dimension shape, and design features of part will be used in this method.

Case Study of Parts Reliability Improvement (프린트 산업에서 부품 신뢰성 시험법 개선)

  • Kim, Pan-Soo;Han, Ki-Woong;Lee, Ji-Hye
    • Proceedings of the Safety Management and Science Conference
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    • 2011.04a
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    • pp.663-674
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    • 2011
  • Continuing and Developing the growth, the company should focus on 'time to market of high quality production' and 'cost down'. Due to the complexity of the production, reliability is being one of the important factor. In this study, in particular, focus on parts reliability test improvement about printer product and proceeded. Need test improvement for time to market that is developed, and reduce expense with test period that is required at Reliability Test time of new parts and should high quality level of product. Finally huge Failure Cost (F-COST) occurs because quality level of product drops if parts that accomplish product does not ensure reliability and this is associated by malfunction in marketplace.

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Case Study of Parts Reliability Improvement (프린트 산업에서 부품 신뢰성 시험법 개선)

  • Kim, Pan-Soo;Han, Ki-Woong;Lee, Ji-Hye
    • Journal of the Korea Safety Management & Science
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    • v.12 no.3
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    • pp.153-162
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    • 2010
  • Continuing and Developing the growth, the company should focus on 'time to market of high quality production' and 'cost down'. Due to the complexity of the production, reliability is being one of the important factor. In this study, in particular, focus on parts reliability test improvement about printer product and proceeded. Need test improvement for time to market that is developed, and reduce expense with test period that is required at Reliability Test time of new parts and should high quality level of product. Finally huge Failure Cost (F-COST) occurs because quality level of product drops if parts that accomplish product does not ensure reliability and this is associated by malfunction in marketplace.

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

  • Kim Kyewan;Park Ji Yeon;Yun Deok Kyun
    • Proceedings of the Society of Korea Industrial and System Engineering Conference
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    • 2002.05a
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    • pp.1-8
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    • 2002
  • 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 qualify control are very important to supply with a product uniformly and inexpensively 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.

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Modeling and Analysis of Warranty Cost for 2D-Policies Associated with Sale of Second-hand Products

  • Chattopadhyay G.;Yun Won-Young
    • International Journal of Reliability and Applications
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    • v.7 no.1
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    • pp.71-77
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    • 2006
  • The market for second hand products has been growing for a variety of reasons (e.g., new products appearing at a faster rate and the expected life of products increasing due to rapid advances in technology). The demand for warranties for second-hand products has been growing along with the growth of the market for second-hand products. Warranty for new products (consumer durables, industrial and commercial, and specialized defense products) has received a lot of attention. In contrast, warranties for second-hand product have received very little attention. Often, dealers of second-hand product such as cars offer 2D-warranties (Year and Kilometers). The expected warranty cost associated with a second-hand product for 2D-Policies is a function of the age of the item and its usage (as it affects failures over the warranty period), the warranty terms and the servicing strategy used by the dealer. This paper deals with development of models for warranty cost analysis along with the decision on sale price and warranty cover for 2D-Warranty policies associated with sale of second-hand products.

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Business Environment, e-Business Strategy and Performance : An Empirical Study of Venture Firms in Daedeok Valley and Hsinchu Science Park (한.대(韓.臺) 벤처기업의 경영환경, e-비즈니스 전략, 성과간의 관계)

  • Hwang, Kyung-Yun;Moon, Hee-Cheol
    • Journal of Information Technology Applications and Management
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    • v.15 no.1
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    • pp.43-65
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    • 2008
  • This study investigates the effects of business environment on the e-business strategy and performance of venture firms. The development of the research model is based on the empirical studies on the strategy literature. The data from the survey was analyzed using Partial Least Squares(PLS). For Daedeok Valley Venture Firms, product innovation differentiation strategy is affected by environmental uncertainty. And, cost leadership strategy tend to be influence by environmental uncertainty. Finally, venture firm's performance is effected by cost leadership strategy and marketing differentiation strategy. However, for in Hsinchu Science Park Venture Firms, product innovation differentiation strategy is affected by environmental uncertainty and heterogeneity. And, marketing differentiation strategy is enhanced by environment uncertainty and industry growth. In addition, cost leadership strategy tend to be influence by environmental uncertainty and heterogeneity. Finally, venture firm's performance is effected by cost leadership strategy and product innovation differentiation strategy.

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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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Development of New Helmet using 2nd Look VE (2nd Look VE를 이용한 오토바이 헬멧 개발에 관한 연구)

  • Kim Kwang-So
    • Journal of the Korea Safety Management & Science
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    • v.8 no.1
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    • pp.145-164
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    • 2006
  • Value Engineering(VE) has been recognized by many companies as a powerful and innovative technical approach for cost down and improvement in function of product and service. VE is a discipline which use an organized, creative approach to achieve the required function at the lowest cost. For the Purpose of developing new product, at this paper used the method of 2nd look VE developing bike helmet, in the order of selecting target, function analysis and writing alternative. The development of Helmet by the process of VE job plan, achieve the cost reduction of 27 million won for developing new product with customer's need.

Economic Tolerance Design of Quality Characteristics by the TAGUCHI's Loss Function (다구찌의 손실함수를 이용한 특성치의 경제적 허용차 설계)

  • 최문일;강창욱;황의철
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.14 no.24
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    • pp.133-139
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    • 1991
  • If the specifications of product. in general. art determined too wide. the precision of product becomes diminished. Otherwise it costs dearly to keep the precision. Therefore, It is realistic to consider various factors in determining specification of qualify characteristics TAGUCH Idefines quality of an object as "Quality is the loss that a product causes to society after being shipped. other than any losses caused by its intrinsic function". Particularly, to improve the performances of product TAGUCHI focuses his attention on the product design and process design which enable the functional characteristics of product to he robust to noises. In this paper, by the TAGUCHI's loss function, the characteristics which affect the variation of a product performance are classified into the scrappable characteristics and the reworkable characteristics when the target values of functional characteristics have been determined. And we will determine the tolerance of each characteristic which minimize the quality cost by the cost function which considers the economic factors and probability features of each characteristic.cteristic.

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