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| Author: | Diekmann, D. Kocakulah, M. C. |
| Title: | Achieving Quality in a Manufacturing Environment: A Case Study |
| Journal: | Journal of Cost Management
2002 : MAY-JUN, VOL. 16:3, p. 38-43 |
| Index terms: | COSTS QUALITY MANUFACTURING INDUSTRY ENVIRONMENT CASE STUDIES |
| Language: | eng |
| Abstract: | In an effort to reduce expenses and improve profitability, Whirlpool Corporation has focused on controlling the cost of quality in its Evansville division. This initiative has been divided into four categories: prevention costs, appraisal costs, internal failure costs, and external failure costs associated with the production, sales, and service of home appliances. The paper discusses specific steps taken to reduce these costs and the savings that have resulted. The authors also state that the cost-of-quality initiative examines and tracks ways to reduce costs during the three critical manufacturing activities: production, sales, and service of home appliances. Whirlpool designed initiatives and services to support cost-of-quality man agement in each of the four cost categories and for each of the three home-appliance manufacturing activities. |
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