• 산업경영시스템학회지
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• 제34권3호
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• pp.71-78
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• 2011

This parer proposes application of quality costing system in quality improvement area. Cost of quality in quality improvement area provides a valuable of both providing the need for improvement and giving a starting point for project. WQCMS(Web-based Q-Cost Management System) have ability to collect and analyze quality data generated from various different departments in the inside or outside of the enterprise without any limitations, if end-users are able to access wide area network. It provides the capability to integrate quality information from database and to generate various easy analysis reports to management's needs using built-in analysis tool modules with real-time. Web-based quality cost management system to measure the performance of quality improvement activities in the business firms. This paper proposes standard model for quality cost process in quality improvement area.

• 대한안전경영과학회지
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• 제14권1호
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• pp.189-200
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• 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.

• 품질경영학회지
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• 제33권2호
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• pp.87-99
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• 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.

• 산업경영시스템학회지
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• 제27권3호
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• pp.97-105
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• 2004

The purpose of this study is to design and implement web-based quality cost management system to measure the performance of quality improvement activities in the business firms. The designed web-based quality cost management system which is also known as WQCMS (Web-based Q-Cost Management System) utilized newly classified objective performance indicator items to measure quality related activities. Well-classified performance measurement Indicator item lists which are played key role in the system was researched and standardized according to size and business categories of enterprise. Its code standards are based from fundamental PAF Model. Developed WQCMS have ability to collect and analyze quality data generated from various different departments in the inside or outside of the enterprise without any limitations, if end-users are able to access wide area network. It provides the capability to integrate quality information from database and to generate various easy analysis reports to management's needs using built-in analysis tool modules with real-time. The proposed system was developed using Microsofi's .Net technology, ASP.NET and MS-SQL Server 2000. By web-enabling Q-cost management system, the effectiveness of the system management and utilization was realized by easiness of information Integration and economical efficiency.

• 산업경영시스템학회지
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• 제27권4호
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• pp.179-186
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• 2004

The purpose of this study is to implement web-based quality cost management system to measure the performance of quality improvement activities in the business firms. Developed WQCMS(Web-based Q-Cost Management System) have ability to collect and analyze quality data generated from various different departments in the inside or outside of the enterprise without any limitations, if end-users are able to access wide area network. It provides the capability to integrate quality information from database and to generate various easy analysis reports to management's needs using built-in analysis tool modules with real-time. The proposed system was developed using Microsoft's .Net technology, ASP.NET and MS-SQL Server 2000. By web-enabling Q-cost management system, the effectiveness of the system management and utilization was realized by easiness of information integration and economical efficiency.

• 산업경영시스템학회지
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• 제24권63호
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• pp.89-99
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• 2001

This paper proposes assessment of quality management activities based on cost of quality. Cost of quality is considered prevention cost, appraisal cost, internal failure cost, external failure cost in this paper. This paper shows quality cost magement system in thermal power site devision according to activity analysis. Cost of quality in power industries provides a valuable method of both proving the need for improvement and giving a starting point for projects.

• 품질경영학회지
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• 제31권4호
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• pp.1-18
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• 2003

Quality is a critical competitive factor in today's environment because of the impact of quality on costs and delivery. Many companies regard quality as a key concept of company strategy in order to achieve the competitive edge. Measuring and reporting quality cost is the first step in quality management program. The supposition of quality cost model is that investment in prevention activities will bring rewards from reduced failure costs, and that further investment in prevention activities will show profits from reduced appraisal costs. In this study, the degree of quality cost deviation is conceptualized. This means a deviation between the ideal and present ranking in the amounts of quality cost categories. This study analysed that the effect of its deviation on quality management activity and performance variables. However, there are no difference in these variables. The major reason is that most of companies are endeavoring for quality management but operating quality cost system unsystematically. The review against a prevention and appraisal activity is necessary.

• 품질경영학회지
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• 제44권4호
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• pp.713-733
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• 2016

Purpose: The primary objective of this case study is to establish a COQ(Cost of Quality) management system for power generation industries. Key topics of this study include collecting COQ elements, their classifications, COQ computation formula, and determining COQ improvement projects. Results: A comprehensive set of COQ elements have been isolated for electric power generation companies. The COQ elements were classified in such a way that they could be managed according to the PAF model as well as the SIPOC diagram. This study showed that a systematic approach could be established for monitoring the COQ elements and using them in the process of improving quality competitiveness. Methods: The PAF(Prevention-Appraisal-Failure) model has been employed in the process of collecting COQ elements for a power generation company. All the cost of quality elements were first examined through an extensive review of articles and books in the field of quality. The cost elements were then refined and augmented by conducting a comparative study with international standards. The COQ elements have been verified by a group of quality managers and classified according to both the PAF model and the SIPOC diagram for better understanding in the entire organization. An improvement strategy has been also proposed by using a typical COQ level of power generation companies. Conclusion: The conventional PAF model was used in establishing a COQ management system for power generation industries. This case study illustrates the procedure about identification, classification and computation of quality costs, including selection of improvement projects. The system can be used not only for observing the current state of cost elements related to quality, but also for planning an improvement strategy using the ratio of cost classification.

• 품질경영학회지
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• 제22권4호
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• pp.132-151
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• 1994

Quality is a critical competitive factor in today's environment because of the impact of quality on market share, productivity and costs. Especially in Korean companies, the importance of quality is heightened as they are losing price competitiveness compared to the new industrialized countries. The traditional approach to quality improvement has been focused on workers. The primary means to achieving acceptable outgoing quality has been to inspect quality by adding more inspectors and inspection stations. This is an example of quality cost that can be reduced through the preventive actions against bad quality. Quality cost is best viewed as a measure of costs specifically associated with the achievement or nonachievement of product/service quality required by customers. This paper examines the concept of quality cost, provides guidance to implementing a quality cost system, and identifies the limitations of quality cost information. These limitations are the target for future research for an efficient and effective implementation of quality cost system.

• 품질경영학회지
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• 제19권2호
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• pp.158-165
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• 1991

The Q-cost has been used in the manufacturing company to decide the optimal level of company's product quality, and to evaluate the effect of company's quality control system since the advent of Q-cost theory. In spite of the following costs are generated in the user side, owing to an unsuitable level of product quality and inadequacy of company's quality control system, these costs are not usually included in the company's Q-cost : (1) the cost generated in relation to a claim proposal as traffic expeneses and transpotation of the product. (2) the cost of maintenance through the useful life of the product, especially accured after quality warranty period. (3) the cost related to the economical efficiency in using the product. (4) the cost ralated to a customer dissatisfaction for the product quality. In this point of view, the contents of user side Q-cost, and the relations between the user side Q-cost and the level of company's product quality are discussed. And then the importance of user side Q-cost in order to determine the optimal quality level is discussed.