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Walter Schroeder Library, Milwaukee School of Engineering
Item Information
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More by this author
Furness, Eric.
Subjects
Quality control
Cost effectiveness
MSEM Thesis.
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by author:
Furness, Eric.
by title:
Quality costs : a ma...
MARC Display
Quality costs : a management tool for improving profitability and productivity / by Eric Furness, Jr.
by
Furness, Eric.
Subjects
Quality control
Cost effectiveness
MSEM Thesis.
Description:
ii, 61 leaves : ill. ; 29 cm.
Contents:
Introduction and overview -- What quality costs encompass in a company -- Securing and measuring the cost amounts -- Interpretation and analysis of the costs -- Impact of quality costs on profitability -- Use of quality costs as a tool for improvement -- Conclusion on the use of quality costs by management.
The effect Quality Cost Analysis has upon the management of a company is both philosophical and practical. The use of Quality Costs to improve bottom line profits is pragmatic and beneficial, their use as a motivational tool is good sense. A Quality Cost system can be a springboard to launch an overall quality improvement program with a myriad of side benefits that go into making a company more productive and profitable. An operating Quality Cost system is an essential part of a total quality control program and is a tool to identify, analyze and control many of the costs inherent in doing business. Quality Costs serve as an aid to measure management effectiveness in maintaining the health of a business in terms of Quailty.
Most quality professionals are familiar with the theory of Quality Costs, however, many have not been able to implement an effective program. This paper will serve as a guide in defining what constitutes Quality Costs and how to obtain the dollar amounts associated with poor quality.
Most companies are eager to reduce poor quality and the costs associated with it yet they do not have a system for adequate measurement. Many misconceptions exist about what is needed to instutute a quality cost system. Some companies believe that it won't tell them anything they don't already know or that it involves complicated accoutning procedures and additional people. This paper shows a method for starting a quality cost system by using existing accounting records and staff much more effectively.
Quality costs show how much less expensive and more productive it is to do something right the first time. They show that it is essential to properly plan and organize the various steps in a product's life from concept through full scale manufacture. They will show how much money can be wasted by not thoroughly reviewing and testing designs before manufacturing. They will show how allowing poor vendor quality is not only costly in terms of scrap and rework, but also in lost time due to manufacturing delays. They will show how much a process that wanders out of control costs, how much an assembler that mistakenly leaves out a lock washer costs, and most improtant, how much it costs to regain/replace a defective item once it is in the hands of the customer.
Implementation of a quality cost system establishes a comparative base-line of costs that a company incurs through having poor quality. These comparative base-line costs show dramatically through graphs and other visual aids where the inadequacies lie, and can then be used to comparatively measure progress as the major inadequacies are identified and corrected. Quality Costs act as a "scoreboard" for management to measure its effectiveness and progress, and provides the initiative to improve.
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Call No.
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Walter Schroeder Library
Master's Theses
AC805 .F87 [198-?]
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