Identification and Assessment of Non Conformity Parameters for Quality Cost Reduction

Author(s):  
M. Boscolo ◽  
E. Padoano
Keyword(s):  
2019 ◽  
Vol 36 (8) ◽  
pp. 1438-1453 ◽  
Author(s):  
Sebastian Sturm ◽  
Gernot Kaiser ◽  
Evi Hartmann

Purpose The dynamics of quality performance and quality cost are gaining renewed interest in quality management literature. Using large sample secondary data, the purpose of this paper is to build up empirical evidence for increasing quality performance in manufacturing in the long-run. The authors then examine whether it is possible to reduce internal and external failure cost over time without increasing prevention and appraisal expenditures in return. Finally, a scale effect in reducing quality cost is measured to clarify the long-run dynamics between quality cost and quality performance. Design/methodology/approach The authors conduct statistical analysis on a large sample secondary data set to reveal relationships between total cost of quality, its components and overall quality performance. Findings Significantly higher quality performance and lower quality cost are observed in the long-run. Quality costs grow less than half as fast as sales volume, pointing to a significant scale effect in quality cost reduction. Practical implications Businesses can use these implications for targeting failure costs and budgeting appraisal and prevention costs. Based on company-specific historical learning behavior through prevention and appraisal activities, an increasingly reliable prognosis of failure cost shall be possible. Originality/value For the first time, quality performance and cost dynamics are assessed using a secondary data set with more than 400 observations. A scale effect for quality cost reduction is measured. The results are of great importance to quality management practice and research.


2011 ◽  
Vol 110-116 ◽  
pp. 4028-4035
Author(s):  
Wari Dansakuncharoenkit ◽  
Damrong Thawesaengskulthai

The PAF model, which is one of techniques about the cost of quality (CoQ), has been introduced to the head stack assembly process in the hard disk drive industry. Purpose to measure the total CoQ in the current process and use it as a tool to identify problems related to quality costs in order to find improvement plans. The total CoQ has been calculated in the percentage of the cost of quality per the cost of finished goods. Cost elements that impacted to the total CoQ have been prioritized and analyzed by using the Fish Bone diagram and the FMEA tool to find the potential causes of problems. The improvement plans have been implemented in order to reduce the chance of occurrences and improve detection ability. The result on two head stack models showed that the total CoQ could be reduced from 1.45% to 1.36% or 6.21% of improvement on the model A and reduced from 1.11% to 1.08% or 2.70% of improvement on the model B. The optimum points between the total CoQ and the quality level are 1.32% and 99.32% on the model A and 1.07% and 98.95% on the model B.


2013 ◽  
Vol 9 (3) ◽  
pp. 133-134 ◽  
Author(s):  
Lawrence N. Shulman ◽  
Harvey Mamon ◽  
Joseph O. Jacobson ◽  
Lee Steingisser ◽  
Anton Dodek ◽  
...  

Better mechanisms need to be put into place so that providers can share in the benefits of high-quality, cost-efficient care. Currently, this is not the case.


2019 ◽  
Vol 30 (3) ◽  
pp. 278-293
Author(s):  
Maja Glogovac ◽  
Jovan Filipovic

In this paper, the PAF (preventive-appraisal-failure) quality costs model is used on the process level, in order to identify those processes which are critical as a top-priority for improvement. The elements of quality costs are considered in relation to the outputs of the processes, where the principle that one process affects the quality of another process by its outputs is taken into account. That is why the failure costs of the affected processes should also be assigned to the quality costs of the observed process. Using the factors proposed in the Process cost model, costs are identified and calculated for each process for two moments: the current (before improvements) and desired (after improvements). Improvements are implemented on the basis of the causes of nonconformity analysis and according to the PAF model assumption that preventive and appraisal activities reduce failure costs and the total costs of quality. The difference between the total costs of quality in two observed moments is seen as the greatest possible quality cost reduction for the observed process. This value is used as a criterion for ranking the processes according to their priority for improvements, taking into account the assumption of the PAF model that greater costs mean lower quality and hence a higher priority for improvement.


2014 ◽  
Vol 23 (2) ◽  
pp. 363-390 ◽  
Author(s):  
Tihana Galinac Grbac ◽  
Željka Car ◽  
Darko Huljenić

2016 ◽  
Vol 7 (2) ◽  
pp. 1-24
Author(s):  
Neto Jose Alves da Silva ◽  
◽  
Giacaglia Giorgio Eugenio Oscare ◽  

2019 ◽  
Vol 10 (1) ◽  
pp. 1-27
Author(s):  
Aniek Wijayanti

Business Process Analysis can be used to eliminate or reduce a waste cost caused by non value added activities that exist in a process. This research aims at evaluating activities carried out in the natural material procurement process in the PT XYZ, calculating the effectiveness of the process cycle, finding a way to improve the process management, and calculating the cost reduction that can achieved by activity management. A case study was the approach of this research. The researcher obtained research data throughout deep interviews with the staff who directly involved in the process, observation, and documentation of natural material procurement. The result of this study show that the effectiveness of the process cycle of natural material procurement in the factory reached as much as 87,1% for the sand material and 72% for the crushed stone. This indicates that the process still carry activities with no added value and still contain ineffective costs. Through the Business Process Mechanism, these non value added activities can be managed so that the process cycle becomes more efficient and cost effectiveness is achieved. The result of the effective cycle calculation after the management activities implementation is 100%. This means that the cost of natural material procurement process has become effective. The result of calculation of the estimated cost reduction as a result of management activity is as much as Rp249.026.635,90 per year.


2018 ◽  
Vol 9 (2) ◽  
pp. 234-257
Author(s):  
Anisa Putri

The aim to be achieved in this study is to analyze the quality and productivity costs of case studies at the Islamic University of 45 Bekasi. The research method used in this study is a qualitative descriptive method. The location of the study was conducted at the Islamic University of 45 Bekasi. The data used is secondary data from the financial statements of Islamic University of 45 Bekasi in the academic year 2013/2014. Methods of data collection using interviews and observation. The highest quality cost discussion results are prevention costs at the cost of seminars and training for lecturers as much as Rp. 450,561,400, -. The lowest quality cost is the assessment fee at the cost of lecturer accreditation of Rp. 1,925,000, -. The percentage of quality costs is 2.1% smaller than the fairness of the total quality costs of 2.5%. The realization of the output of new student admissions was obtained in the 2013/2014 school year as many as 1,339 people. Total students 6,364 people. The study period is more than 4 years and has not graduated as many as 992 people. Failure costs as much as 16% of total students. Realization of financial output was achieved in the amount of Rp. 39,384,232,556, - ​​Input Rp. 35,606,307,800, - used to obtain output. Company productivity is efficient because output is greater than input. Company productivity is effective because the company achieves financial goals by obtaining a surplus of Rp. 3,777,924,756, - The conclusion that can be drawn is that quality costs are able to obtain output in the form of income exceeding its input value so that productivity is efficient and effective and surplus.


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