• Journal of Korean Society for Quality Management
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• v.40 no.2
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• pp.106-116
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• 2012

This paper aims to develop the adequate quality cost model at a company which delivers ICT(information communication technology) services. One particular business unit was in the first instance selected and quality costs were then analysed at an organization level, for a department and for specific processes. Some areas were determined for quality improvement at each level and their causes were also investigated. However, the existing PAF(prevention, appraisal and failure) models reveled some limitations because the ICT services company included the different number of large and complicated business processes. The PAF model did not sufficiently highlight the detailed causes of failure costs. It did not also stimulate the relevant department's strong responsibility to improve such problems. Both micro PAF and process cost models were proposed in order to cope with this. In final, it explains the relationship between six sigma and quality costing, suggesting how to use the quality costing results as a means of promoting either continuous improvement or innovation in a case company.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.10a
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• pp.539-553
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• 2004

This paper models and solves contracting schemes for both when quality is perfectly observable and when quality is not perfectly observable in supply chain. When quality is perfectly observable, the first-best optimal solution which is that the marginal utility of procurer obtained from the quantity and quality supplied by suppliers (the price) is equal to the marginal cost to produce the quantity and quality is obtained. However, when quality is not perfectly observable to procurers the optimal solution cannot be the first-best but the second-best where the price is greater than the marginal cost to produce the quantity and quality and social welfare is less than that of the first-best solution.

• Journal of Korean Society for Quality Management
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• v.36 no.2
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• pp.20-27
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• 2008

Tolerance design has been identified as an important research area and a number of models have been proposed in the literature. This paper investigates the effect of limited capacity on tolerance design for products with nominal-the-best type (N-type) quality characteristics. The model is developed under the assumption that the reprocessed and nonreprocessed items are produced by the same manufacturing process and therefore their quality characteristics are identically and independently distributed. Profit models are constructed which involve four price/cost components; selling price, cost incurred by imperfect quality, reprocessing and quality inspection costs. Methods of finding the optimal tolerance limits are presented, and a numerical example is given. Sensitivity analyses are also performed to study the effect of a process standard deviation on this model.

• Journal of Korean Society for Quality Management
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• v.38 no.1
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• pp.10-19
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• 2010

The competitive strategies of the Korean manufacturing companies have changed from the "cost leadership" strategy in the early developing stage since 1960's to the "stuck in the middle" position since 1990's in the face of emerging new cost leaders as the Chinese companies. The data on the strategic contents of the Korean manufacturing companies show that their strategies are seeking the value innovation through not only quality improvement but also cost reduction altogether rather than selecting one on the trade-off relation between the both competitive dimensions. Their strategic actions seem to be seeking the operational efficiencies through all the value chain activities rather than the strategic effectiveness by selecting and focusing on the specific competitive dimension, which is considered as a typical strategic approach. Their strategy seems to be non-strategic in the general sense. But their non-strategically looking behaviors can be reasonable enough for their sandwiched competitive position between the global quality leaders and following cost leaders. This paper explains why their strategies can be right through the theoretical explanations by using the quality-price elasticity approaches for the consumer behaviors. We can call their strategic activities as the value innovation strategy.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2001.10a
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• pp.203-206
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• 2001

Finding the optimal solution in the river water quality management system is very hard with the non-linearity of the water quality model. Many suggested methods for that using the linear programming, non-linear programming and dynamic programming, are failed to give an optimal solution of sufficient accuracy and satisfaction. We studied a method to find a solution optimizing the river water quality management in the aspect of the efficiency and the cost of the waste water treatment facilities satisfying the water Quality goals. In the suggested method, we use the QUAL2E water quality model and the genetic algorithm. A brief result of the project to optimize the water quality management in the Youngsan river is presented.

• Journal of the Korea Safety Management & Science
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• v.17 no.3
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• pp.319-330
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• 2015

This study examines the factors configuration management quality of the construction company, and to analyze the impact of these factors on Project Performance and Company Performance. That quality construction management configuration factors, chief executives, corporate strategy, organizational management, information technology, and partners five variables, Project Performance variables, process management, quality management, cost management, safety management, environmental management five variables, and Company Performance parameters of financial competence and organizational satisfaction, quality of work three variables, the overall causal relationship between the presence of specific activities and management quality, classified according to the size of the company were verified by the difference in impact between the two groups.

• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.1
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• pp.19-32
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• 2002

This paper examines the effect of the producer-supplier quality contract parameters and the magnitude of the quality related variables on the quality of the final products. Our analysis focuses on the parties' equilibrium behavior In a quality game environment where the supplier should choose among the two production technologies, one requiring high cost but producing high quality Parts and the other requiring low cost but producing low quality parts and where the producer should decide whether to do the inspection of the parts. The game framework is employed to depict the potential conflicts existing between the Producer and the supplier because the Producer can not observe the supplier's choice and each party wants the other to bear the cost of producing high quality products. In our model, we specifically consider the competitive situation where the producer competes with a firm producing the same product. We employ the market share attraction model to Incorporate the competitive situation and completely characterize the equilibrium by using the Nash equilibrium concept for the game solution. Our results show that the equilibrium depends on the contract terms and the magnitude of the quality related variables. Compared to the non-competitive situation, the probability of producer's Inspection and the probability of supplier's choosing the high quality technology increases in a competitive situation. This is true even when the competitor's quality is lower than the producer's lowest. As a result, the quality of the final product increases In a competitive situation. And as the failure cost borne by the supplier increases, the probability of choosing the high quality technology Increases and the probability of inspection decreases. The net effect of this results in the decrease of the final product quality.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.213-218
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• 2007

Domestic by opening of world construction market with recent FTA should be achieved systematic action that of exoteric surrounding construction environment to inculcate this because consciousness structure unpreparedness of legation fields about quality is expose for hindrance factor for QI in construction spot by quality and organization management official important thing for building company's QI because conquest is possible through QI of construction to possess government official and international competitiveness of customer satisfaction by offering consumer building of change and good quality rapidly, organization's CEO determination must become side improvement the formation government official enemy, and when inspect by each process, responsible persons participate cooperation enterprise space-time. To improve this because complete charge department for quality control appears that organization management need complete charge department being expose by greatly unprepared misgovernment in heavy hydrogen building company, expense that CEO under direct control histiocyte modeling air with AHP analysis is economical will be cost, but is construed can bring excellent effect in operation management side of quality and organization such as cost-cutting effect in maintenance side and I should do so that can occupy competitive power high position with tissue at active quality complete charge deputy.

• Journal of Korean Society for Quality Management
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• v.46 no.4
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• pp.797-820
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• 2018

Purpose: It is to seek for an appropriate cost rate analysis methodology of credit card value propositions in Korea. For this issue, it is claimed that methodologies based on probability distribution is more suitable than methodologies based on data-mining. The analysis model constructed for the cost rate estimation is called VCPM model. Methods: The model includes two major variables denoted as S and P. S is monthly credit card usage amount. P stands for the proportion of usage amount at special merchants over the whole monthly usage amount. The distributions assumed for P are positively skewed distributions such as exponential, gamma and lognormal. The major inputs to the model are also derived from S and P, which are E(S) and the aggregate proportion of usage amount at special merchants over the total monthly usage amount. Results: When the credit card's value proposition is general discount, the VCPM model fits well and generates reasonable cost rate(denoted as R). However, it seems that the model does not work well for other types of credit cards. Conclusion: The VCPM model is reliable for calculating cost rate for credit cards with positively skewed distribution of P, which are general discount card. However, another model should be built for cards with other types of distributions of P.

• Journal of Korean Society for Quality Management
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• v.52 no.1
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• pp.23-42
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• 2024

Purpose: This study aims to investigate the impact of two types of information quality, which are platform-oriented information quality and customer-oriented information quality, on customers' decision-making processes in the Online to offline (O2O) platform environment. Grounded in the product brokering efficiency model, which encompasses screening cost, evaluation cost, and decision quality, a model framework was developed. Furthermore, this study explores how these decision-making processes affect customer loyalty. Methods: Given that food delivery apps are the most widely used O2O service in Korea, this study targeted users of these apps for data analysis. We conducted hypothesis testing through a purposive sampling methodology focusing on food delivery app users. A Partial Least Squares Structural Equation Modeling analysis was conducted to analyze the data. The data collection occurred via an online survey from October to December 2021, with a total of 212 respondents participating. Results: The results of this study revealed the significant role of information quality in helping customers' decision processes while using food delivery apps. Specifically, it was found that platform-oriented information positively influences decision quality, while customer-oriented information significantly affects both the reduction of evaluation cost and the enhancement of decision quality. Additionally, the study indicated that lower evaluation costs and higher decision quality lead to increased platform loyalty. However, a reduction in screening cost did not have a significant impact on platform loyalty. Conclusion: While previous studies have overlooked the existence of two sides, service provider and user, in a platform, this research holds significance in its analysis of how information quality impacts loyalty by utilizing the two kinds of information quality. Practitioners can enhance customer loyalty to the platform by enriching customer-oriented information, thereby reducing customers' evaluation costs and encouraging more loyal usage of the platform.