Reliability vs. Total Quality Cost: part selection criteria based on field data, combined optimal customer and business solution

Olejnik, Sebastian and Al-Diri, Bashir (2011) Reliability vs. Total Quality Cost: part selection criteria based on field data, combined optimal customer and business solution. In: The 2011 IEEE International Conference on Quality and Reliability, 14-17 September 2011, Bangkok, Thailand.

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Abstract

Most privately owned businesses are formed to generate profits. Every year, manufacturers loose a portion of potential profits on covering warranty claims. To minimize warranty costs companies focus on product quality improvements. In this project real historical warranty data of three electronic sensors have been analyzed. Two-parameter Weibull distribution to measure sensors’ reliability have been used. Monte Carlo simulations have been implemented to calculate Total Quality Costs (TQC). The results show that cost of improved products may have an adverse impact on business profit – the main business objective. It has been demonstrated how reliability and TQC interact with each other and specified optimum business solutions. A new ratio representing combined business and customer objectives was introduced – Quality Cost Ratio (QCR). A new term has been proposed – Excessive Quality Cost (EQC). Improved process of selection parts and materials were proposed.

Item Type:Conference or Workshop Item (Presentation)
Keywords:Total Quality Cost, Quality Cost Ratio, Excessive Quality Cost, Warranty, Reliability, Weibull, Monte Carlo
Subjects:G Mathematical and Computer Sciences > G500 Information Systems
Divisions:College of Science > School of Computer Science
ID Code:4652
Deposited By: Bashir Al-Diri
Deposited On:04 Sep 2011 13:28
Last Modified:04 Dec 2013 16:12

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