Modelling the cost of poor quality in a five-state part manufacturing operation: A case study

Modelling the cost of poor quality in a five-state part manufacturing operation: A case study

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Article ID: iaor19992172
Country: United Kingdom
Volume: 49
Issue: 12
Start Page Number: 1249
End Page Number: 1253
Publication Date: Dec 1998
Journal: Journal of the Operational Research Society
Authors: , , ,
Keywords: markov processes
Abstract:

The quality history of individual parts from a critical operation can be modeled by a five-state Markov chain involving factory rework operation, customer inspection and field test, parts scrapped, parts defective but used-as-is by concession or re-graded for alternative applications, and defect-free parts satisfying customer requirements. We estimate total failure cost by a five-state Markov chain model and present a case study to demonstrate relationship of the total failure cost to appraisal and prevention costs.

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