Summary
This paper describes the outcome of an attempt to collect quality-related costs in an engineering company which makes heat exchange equipment on a batch production basis. The company employs 150 people and has a turnover of about £5 million per year. Prior to the investigation the company did not collect quality-related costs other than scrap and warranty.
The company’s quality-related activities were identified using various cost elements to form a check-list. Sometimes there was doubt whether activities should be classified as being quality related or not. Difficulties were met when attempting to quantify the activities and still further problems arose when ascribing costs to them. When the quality-related cost statement was eventually completed the problems of whether the company’s performance was good, bad or indifferent, and the scarcity of comparative data arose. The problems met, their implications, and some possible solutions are discussed in this paper.
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References
Dale B G & Plunkett J J (1984) A study of audits, inspection and quality costs in the pressure vessel fabrication sector of the process plant industry. Proceedings of the Institution of Mechanical Engineers, 198B, No. 2, pp45–53.
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Anon (1970) Quality Costs — What and How, American Society for Quality Control, Milwaukee, Wisconsin.
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© 1986 Springer Science+Business Media New York
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Plunkett, J.J., Dale, B.G. (1986). An Artless Attempt to Collect Quality-Related Costs. In: McGoldrick, P.F. (eds) Advances in Manufacturing Technology. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-1355-8_57
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DOI: https://doi.org/10.1007/978-1-4757-1355-8_57
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4757-1357-2
Online ISBN: 978-1-4757-1355-8
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