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Cost of Quality - A System Dynamics Approach


Affiliations
1 Centre Training and Placement, NIT, Jalandhar, India
2 Department of Industrial and Production Engineering, NIT, Jalandhar, India
 

The aim of the using the technique of cost of quality is to reduce non-conformance costs i.e internal failure cost & external failure cost by investing in conformance costs i.e. prevention cost & appraisal cost. The prevention activities are undertaken to identify & rectify the ischolar_main cause of defect. System dynamics has been used to study the effect of investment in the prevention & appraisal activities w.r.t. time. This will help to calculate the time required for the return on the investment and the change in the total cost of quality over a period of time. This will enable the management of the organization to understand how the prevention & appraisal activities affect the failure costs. It has been found that Prevention is better investment as compared to appraisal. When compared over a period of time internal failure cost and external failure cost reduce with the increase in prevention cost.
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  • Cost of Quality - A System Dynamics Approach

Abstract Views: 188  |  PDF Views: 2

Authors

Rajeev Trehan
Centre Training and Placement, NIT, Jalandhar, India
Rajiv K. Garg
Department of Industrial and Production Engineering, NIT, Jalandhar, India
Anish sachdeva
Department of Industrial and Production Engineering, NIT, Jalandhar, India

Abstract


The aim of the using the technique of cost of quality is to reduce non-conformance costs i.e internal failure cost & external failure cost by investing in conformance costs i.e. prevention cost & appraisal cost. The prevention activities are undertaken to identify & rectify the ischolar_main cause of defect. System dynamics has been used to study the effect of investment in the prevention & appraisal activities w.r.t. time. This will help to calculate the time required for the return on the investment and the change in the total cost of quality over a period of time. This will enable the management of the organization to understand how the prevention & appraisal activities affect the failure costs. It has been found that Prevention is better investment as compared to appraisal. When compared over a period of time internal failure cost and external failure cost reduce with the increase in prevention cost.