QUALITY COST ANALYSIS IMPLEMENTATION HANDBOOK
STANFORD UNIV CA DEPT OF INDUSTRIAL ENGINEERING
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The QUICO Quality Improvement through Cost Optimization system covers the planning, installation, and use of quality cost data analysis. The basic idea is simply to operate a manufacturing unit or complex so that the total of quality related costs is a minimum. Quality related costs are made up of 1 expenses incurred because of not producing the highest possible quality resultant costs, 2 expenditures made to create conditions resulting in high quality products quality creation costs, and 3 expenditures made to measure quality levels being produced and causes of deficiencies quality and defect inference costs. Analysis of quality cost data provides direct pay-offs in reduction of resultant costs and the major sources are discussed. Secondary benefits come from use of the data as a measurement of the effectiveness of the quality assurance effort, as a motivant to workers who must produce the high quality, and as a management guidance tool. Suggested cost accounts are given along with suggested methods of summarizing and displaying data in the most meaningful way for all levels of use. Almost all companies now have sufficient cost data to estimate cost reductions to be expected from the QUICO system.
- Administration and Management
- Economics and Cost Analysis
- Manufacturing and Industrial Engineering and Control of Production Systems