The Importance of quality cost benefits is sometimes not fully recognised by industrial managers. Quality cost money. Industrial managers recognize this and tend to be afraid of spending on quality. But quality also earns money. Industrial managers do not seem to be fully convinced of this fact. Unfortunately, even existing literature on the subject does not encourage investing for higher quality. Most of the cost models about quality deal with the quality improvement and the costs associated in achieving the desired level of quality, but fail to incorporate the benefits of improved quality. In this work, an attempt has been made to develop a quality costs model which incorporates the benefits. The quality cost elements have been drawn from various standards sources such as British Standards and American Society for Quality Control publications on quality cost. The benefits from investing for quality are taken from recently published case studies and reports as well as from our own experiences. The elements of quality related activities of design department, such as design standards, training design staff and test equipment are identified. The contribution of each individual element, starting from estimation of looses due to poor design to preventions of poor design is isolated and linked dynamically so that costs and benefits are demonstrated through time. The quality costs and benefits model was developed using the System Dynamics Modelling approach and simulated using the computer software package “Professional DYNAMO Plus”. The simulated results demonstrate the extent to which prevention investment is justified by future earning.

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Date created

• 1994

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

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fe35db792b573af835d96e6eba4759cd

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Part of

c060552994c1527f70693734935660f1

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Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives