Dynamic COQ Model for Different Quality Levels

Liu, Yu Min

doi:10.1108/15982688200700006

Cited by 3 publications

(5 citation statements)

References 19 publications

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“…Trying to answer that question, Juran and Ludvall in 1951 developed the so-called "PAF model" (Prevention-Appraisal-Failure), which predicts the existence of a positive "optimum" in the relationship between prevention+appraisal costs and failure costs (Wasserman and Lidland, 1996;Liu, 2007;Schneiderman, 1986;Fine, 1984), which is still widely used (Schiffauerova and Tomson 2006). In this model, described in Figure 1, the failure cost curve is monotonic and descending with q (quality level), and the curve of quality improvement costs (prevention+appraisal) is also monotonic, but growing with q.…”

Section: Quality Costsmentioning

confidence: 99%

“…Prasad and Tyson (1995) published a conceptual and exploratory model similar to Wasserman and Lindland (1996) which takes into account the effects of the learning curve and the efforts of competitors. Liu (2007) and Kiani et al (2009) published articles with dynamic models of the quality costs, but these models do not advance the question of how the investment / disinvestment is taken and how are the interaction effects of these decisions.…”

Section: Quality Costsmentioning

confidence: 99%

“…In an attempt to define the optimal level of quality costs, Juran and Ludvall developed the so-called "PAF model" (Prevention-Appraisal-Failure), which predicts the existence of a positive "optimum" in the relationship between prevention+evaluation costs and failure costs (Wasserman and Lidland, 1996;Liu, 2007;Schneiderman, 1986;Fine, 1984), and is still widely used (Schiffauerova and Tomson 2006).…”

Section: Introductionmentioning

confidence: 99%

“…Later, criticism came to this model from the continuous quality improvement defenders, including Crosby and Deming, then, the original model was reviewed by Juran and Gryna, creating the so-called "new PAF model", where the "optimum" of the balance between prevention+evaluation costs and failure costs became the Zero Defects (Liu, 2007;Freisleben, 2004;Schneiderman, 1986). Some authors as Schneiderman (1986), Foster (1996) and Burgess (1996) proposed that these two models were, in fact, compatible, depending on the conditions.…”

Section: Introductionmentioning

confidence: 99%

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Dynamic quality cost model based on complexity theory

Duarte

2016

International Journal of Quality &Amp; Reliability Management

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Purpose This article presents a dynamic model of decision-making on Quality Costs, using the concepts of the Complexity Theory, consistent with the PAF models (Prevention Appraisal-Failures) and with the “optimum” derivation feature (generally towards Zero Defects). Design/methodology/approach After a literature review and the mathematical model development, this model was simulated in several situations and the results were evaluated, producing new insights. Findings The results show that the larger the delay between action and reaction "t" is, the more complex the system will be, and the effects of the decisions are experienced for “k” later periods, but for some specific “t” a dynamic balance is possible. Research limitations/implications The strategy is immutable. The quantity produced is not a variable in the model. The investment amount “x” is fixed. Originality/value This model is original due to the use of the Complexity Theory, and also to show that the optimum in terms of quality costs can be a positive value or Zero Defects, being in fact a moving target, depending on external conditions. The model value lies in the fact that it is dynamic, so closer to the reality of decision-making enterprises, and for revealing the importance of factors involved with complexity has, such as the time lag "t" for the success of management strategies of Quality Costs.

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Section: Quality Costsmentioning

confidence: 99%

Section: Quality Costsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Dynamic quality cost model based on complexity theory

Duarte

2016

International Journal of Quality &Amp; Reliability Management

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“…Using a Life cost-based FMEA concept approach, FMEA uses a cost of quality to assess the cost of the repercussions of a possible failure mode. (Ahsen, 2014;Guinot et al, 2017;Omar, 2014;Rhee et al, 2009;Rhee & Ishii, 2003;Spencer et al, 2003) (Bamford & Land, 2006;Carson, 1989;Chatzipetrou & Moschidis, 2017;Dale & Wan, 2002;Dror, 2010;Goulden & Rawlins, 1997;Harrington, 1995;Kim & Nakhai, 2008b;Krishnan, 2006;Liu, 2007;Margavio et al, 1994;Schiffauerova, 2017…”

Section: Literature Reviewmentioning

confidence: 99%

Cost of Quality: Literature Review Based on Meta-Analysis

Proceedings of the International Conference on Industrial Engineering and Operations Management

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Measurement of Cost of Quality (COQ) appears to be an important component for organizations to maintain or develop their market share in today's competitive business environment. Quality is a critical point and customer expectations of quality are always changing. Reducing quality costs decreases total organizational costs, which leads to lower prices for goods manufactured or services provided, increased customer satisfaction, and improved organizational performance. The purpose of this research is to show the development of the quality cos model during the previous fifty years, as illustrated in 446 real-data studies. A meta-analysis of these publications is carried out in order to show how the variables utilized in the research of Quality Costing have evolved through time, in connection to the date of publication, the business sector, and the geographical origin of each paper. Research methodologies approach the cost components were analyzed using Multiple Correspondence Analysis integrated Vos Viewer and N-Vivo12 plus, which is a valuable approach for exploring the interrelationships among all aspects with the goal of identifying the dominant and most significant patterns in their structure. The findings of this research are the theme on Cost of Quality which covers 5 clusters and has five main topics. It is shown that there were in the 496 papers, 446 from database Scopus and 150 form databases DOAJ (Directory of Open Access Journals). The result of the Vos viewer showed that there are five concept clustery, namely: Cluster 1 related the concept of cost; cluster 2 highlights the concept of cost-effectiveness, and cluster 3 emphasizes the concept of humans. Furthermore, cluster 4 features a quality control philosophy, while cluster 5 focuses on risk. Based on meta-analysis with N-Vivo, shown that in Meta-Analysis using N-Vivo include cost (17.59 %), quality (17.59%), and quality cost (10.12 %), Quality Model (5,17 %). The limitation of this study is that the article reviewed sources from Scopus dan DOAJ. Furthermore, the topic about the cost of quality based on Failure Mode Effect Analysis is needed for application and development.

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