Development of Quality Cost Model within a Supply Chain Environment

Lutfi Aniza; Michael H. Wang; Fritz Rieger

doi:10.4028/www.scientific.net/AMM.330.737

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HomeApplied Mechanics and MaterialsApplied Mechanics and Materials Vol. 330Development of Quality Cost Model within a Supply...

Development of Quality Cost Model within a Supply Chain Environment

Abstract:

Determining the quality cost is one of the best ways that can assist industrial or business organizations to know clearly the investment and return of their quality improvement efforts. The information provided by accurate quality cost calculation is also a significant tool that can assist our assessment of the effectiveness of quality management system, as well as identification of quality issues within the organization and creation of opportunities for improvement. The purpose of this paper is to show the development of a quality cost model that includes all possible quality cost components such as Prevention, Appraisal and Failure (P.A. F) costs. Based on reviewing and analyzing various quality cost models, a generic quality cost model is developed. The proposed model can be used as a tool to calculate various quality costs. In addition, it can be used to determine the most serious failure cost. A case study has used to validate the proposed model. In this case, the implementation showed that the model is able to identify and quantify the hidden cost related to the quality in electronic assembly plant. Also, it is used to identify the potential improvement opportunities within the plant.

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Periodical:

Applied Mechanics and Materials (Volume 330)

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737-742

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https://doi.org/10.4028/www.scientific.net/AMM.330.737

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Online since:

June 2013

Authors:

Lutfi Aniza, Michael H. Wang, Fritz Rieger

Keywords:

Direct Quality Cost, Improvement Opportunities, Modeling, Quality Cost

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