• Title/Summary/Keyword: Quality Management Cost

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Cost-Oriented QC and Process-Oriented QC; Which is more Desirable Approach?

  • Lee, Sang-Do;Lee, Dong-Choon
    • Journal of Korean Society for Quality Management
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    • v.13 no.2
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    • pp.2-7
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    • 1985
  • This paper introduces two approaches of the cost-oriented QC and the process-oriented QC, and compares them on several aspects. The cost-oriented QC tries to assure the specified quality level by sampling inspection within minimum quality cost, while the process-oriented QC aims at realization of target value of quality specification through process adjustment when a product deviates from the target. But the final purpose of both approaches is on quality assurance for markets and consumers. After all, desirability is a question of quality cost. This paper suggests two of cost functions for decision making criterion.

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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 Application of QFD Application Model for Target Performance and Cost Setting of The Weapon System (무기체계 목표성능과 목표비용 설정을 위한 품질기능전개(QFD) 응용모델 연구)

  • Lee, Tae Hwa;Hong, Sung Hoon;Kwon, Hyuck Moo;Lee, Min Koo
    • Journal of Korean Society for Quality Management
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    • v.46 no.4
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    • pp.821-842
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    • 2018
  • Purpose: To derive key requirements and key technologies for weapon system acquisition business by using Qualify Function Deployment (QFD), and to reduce business cost by setting the target performance and key expense of weapon system. Methods: We propose a QFD methodology that can induce rational decision-making by translating analyst's subjective opinions into quantitative values when analyzing requirements at the initial stage of weapon system development project. Based on QFD methodology, QFD application model combining house of quality, value engineering, and analogy cost estimating technique is presented. Results: It was possible to analyze the specific requirements necessary for the development of the weapon system, to solve the communication problem of the participants, to set clear development direction and target. Conclusion: By applying the QFD application model at the early stage of the weapon system acquisition project, it is possible to reduce the business cost by establishing clear development direction and goal through the procedural analysis process.

A study of the effect of S-city's air pollution cleaning cost. (S시의 대기환경관련 투자 효과에 관한 연구)

  • Choi, Young-Tei;Cho, Jai-Rip
    • Proceedings of the Korean Society for Quality Management Conference
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    • 2006.11a
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    • pp.283-286
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    • 2006
  • The study of The cost of cleaning S-city's air pollution is effective. The cost is calculated by ABC distribution system and analysed the air pollution and cost's correlation. Because the whole air pollution's analysis is so heavy, We did about vehicle's pollution.

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Development of Simulation Model to Assembly Tolerance Design (조립 공차 설계를 위한 시뮬레이션 모델 개발)

  • 장현수
    • Journal of the Korea Safety Management & Science
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    • v.3 no.3
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    • pp.221-230
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    • 2001
  • The assembly tolerance design methods have applied linear or nonlinear programming methods and used simulation method and search algorithms to optimize the tolerance allocation of each part in an assembly. However, those methods are only considered to the relationship between tolerance and manufacturing cost, which do not consider a quality loss cost for each part tolerance. In this paper, the integrated simulation model used genetic algorithm and the Monte-Carlo simulation method was developed for the allocation of the optimal tolerance considering the manufacturing cost and quality loss cost.

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Cost Analysis of Manufacturer's View Point Under Stepdown Warranty Policy

  • Kim, Jae Joong;Kim, Won Joong
    • Journal of Korean Society for Quality Management
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    • v.19 no.1
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    • pp.103-114
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    • 1991
  • This article is concerned with cost analysis in warranty policy. The warranty cost can be different according to warranty rate and warranty renewal policy. In this paper the stepdown warranty policy is analyzed. Assuming the nonrepairable item, manufacturer's cost is calculated in stepdown warranty policy and free replacement, pro-rata, hybrid policy. Numerical examples are given over Weibull time-to-failure distribution.

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A Study on the Economical Design of Sampling Plan for Rectifying Inspection by Attribute (계수(計數) 선별형검사(選別型檢査) 설계(設計)의 경제성(經濟性)에 관한 연구(硏究))

  • Kim, Yun-Seon;Hwang, Ui-Cheol
    • Journal of Korean Society for Quality Management
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    • v.9 no.1
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    • pp.40-45
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    • 1981
  • This paper deals with an economical sampling plan, recently being concentrated on and, namely, investigates how to determine the basic concepts to settle the sampling plan of a minimum cost. On an inspection of sampling, a Linear Cost Model of a cost function which is concerned with the representative cost dements, is established and by the investigation of its possible solution economical single sampling plan for recitying inspection by attribute is suggested.

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A Replacement Policy for Fixed Limits of Repair Cost (고정수리비용(固定修理費用) 한도(限度)에서의 부품교환정책(部品交換政策))

  • Jeong, Yeong-Bae;Hwang, Ui-Mi
    • Journal of Korean Society for Quality Management
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    • v.14 no.2
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    • pp.28-32
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    • 1986
  • This paper studies a new replacement policy in case that average repair cost rate increases linearly in proportion to time t. At the moment when the repair cost rate reaches or exceeds a fixed level, the component is replaced. This policy is compared with the economic lifetime policy. Advantages of this model according to the increment of replacement cost is shown in numerical example.

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Versioning Digital Products (디지털상품의 품질 차별화)

  • Yoo Keuk Ryoul
    • Korean Management Science Review
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    • v.21 no.3
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    • pp.1-12
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    • 2004
  • The paper demonstrates that versioning of digital products occurs more frequently than that of physical products because of low marginal cost. The versioning occurs no matter what a customer knows his/her reservation price. Low-quality version will not be produced when the difference between reservation prices is very large. The paper also shows that a firm tries to lower the quality of low-quality product to prevent customers with high reservation prices from purchasing low-quality product.

The Effects of Success Factors of Six Sigma on the Management Performance (6시그마 성공요인이 경영성과에 미치는 영향)

  • Yang, Seung-Kwon
    • Journal of the Korea Safety Management & Science
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    • v.9 no.5
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    • pp.117-123
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    • 2007
  • This Purpose of this paper is to suggest the effects of success factors of six sigma on the management performance. This dissertation deal with key factors that led to successful implementation through existing literature. Therefore, this major success factors of six sigma revealed performance of cost reduction and improving quality. This study is empirical analysis the effects of six sigma performance of cost reduction and improving quality)on the management performance(profitability, growth, market value). The results of this study, six sigma quality performance turns out to have positive(+) effect on the all management performance.