The development and implementation of a simulation tool for the assessment of quality economics within a cell-based manufacturing company

The ability to assess quality economics is important in efficient and competitive manufacturing. Key issues such as the selection of production equipment, process plans and the choice of quality control strategies require an understanding of the quality costs involved. Traditional approaches to quality costs are limited by the necessity to produce reports based on historical data. What is required is a tool to allow quality engineers to investigate the quality performance and financial implications of changes in equipment, set-up, or procedures before they are implemented. This will allow decisions to be made with greater knowledge of the likely consequences. Simulation is ideal for this purpose, but the application of simulation methods to quality economics has not yet been fully developed. This article briefly reviews previous approaches to simulation in this area and describes a new model aimed at simulating quality costs in cell-based manufacturing. The software implementation of the model and its validation are described. The approach is explained with the aid of a practical example taken from industry, describing the simulation of an actual manufacturing cell to show the use of the software tool to monitor performance and target improvement programs. The article then examines the use of the simulation tool to investigate more detailed quality cost issues. An example of the economics of attribute control charting is explored, to demonstrate the ability of the approach to produce results useful for guiding specific process improvement programs.