A study on the application of quality cost model to an original equipment manufacture (OEM) company

Pao Yue-kong Library Electronic Theses Database

A study on the application of quality cost model to an original equipment manufacture (OEM) company

 

Author: Lau, Yiu-pong Eric
Title: A study on the application of quality cost model to an original equipment manufacture (OEM) company
Degree: M.Sc.
Year: 2000
Subject: Manufacturing industries -- China -- Hong Kong -- Quality control -- Case studies
Quality control -- China -- Hong Kong -- Costs -- Case studies
Hong Kong Polytechnic University -- Dissertations
Department: Multi-disciplinary Studies
Institute of Textiles and Clothing
Pages: vii, 127 leaves : ill. ; 31 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1503012
URI: http://theses.lib.polyu.edu.hk/handle/200/5083
Abstract: Quality cost is recognized as one of the tools to reveal the organizational quality performance. Nowadays, many large corporations around the world have their own quality cost reporting system. However, there are very few organizations in Hong Kong that are running the quality cost program. In fact, top management of an organization would not know the overall quality performance until they are attempted to measure and report it in their language - money. The dissertation is aimed to establish a quality cost program in an original equipment manufacture (OEM) organization in Hong Kong. As the quality cost is exposed, the associated improvement projects can be taken to upgrade the organizational quality level. The dissertation began with the evaluation of several quality cost models namely process cost model, prevention-appraisal-failure cost model, Taguchi quality loss function model and economics of quality model. Based on the strength and weakness comparison of different models and the organizational unique environment, the best model is devised for the application. On the other hand, the organizational analysis is described and as a result a tailor made cost model is determined accordingly. The associated estimation and assumption plus the source of cost collection will be mentioned. A quality cost management system is built in order to perform the data manipulation and reporting. The system is a self-developed program using Microsoft Access which under the Windows platform. It includes the data entry, edition, costs report, ratio figure, graphical presentation, capability index Cpk and cost control chart. The details will be explored in section 5. Then the first organizational quality cost assessment as well as the result interpretation and recommendation are reported. Explanation will be given on how the integration is made between the quality cost and ISO quality system and the relationship with the total quality management (TQM). A survey is carried out within the organization to obtain the quality cost information and to evaluate the quality cost management system. It is included in the comment and discussion section. Finally, the conclusion of the dissertation will be provided.

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