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Author:Chen, J-M.
Tsou, J-C.
Title:An optimal design for process quality improvement: modelling and application
Journal:Production planning & control
2003 : OCT-NOV, VOL. 14:7, p. 603-612
Index terms:Case studies
Cost functions
Production management
Process quality management
Language:eng
Abstract:This article deals with the optimal design problem for process improvement by balancing the sunk investment cost and revenue increments due to the process improvement. An optimal model is developed based on Taguchi cost functions. The model is validated through a real case study in automotive industry where 6-sigma DMAIC methodology has been applied. According to the research, the management can adjust the investment on prevention and appraisal costs on quality improvement that enhances process capability, reduces product defect rate and, as a result, generates remarkable financial return.
SCIMA record nr: 257348
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