The quality movement has become popular among corporations big and small for one reason: empirical evidence suggests that quality and productivity (and hence profitability) are linked. Unfortunately, while many firms accept that quality and productivity go together, few actually track the gains associated with their quality improvement programs. Companies also tend to spend on quality improvement with no indication or estimation of the impact of funding on the targeted process. It would be of great value to know: (1) the impact of spending to enhance the product/process quality level, and (2) the point at which expenditures for quality improvement are not economical.
This research involves modeling the quality level of a product composed of integrated components/processes and the costs associated with quality improvement. Presented in this research is a methodology for determining the point at which the target quality level is reached. This point signifies when future spending should be re-directed. The research defines this point as the "Crash Quality Point (CQP)." Cases of a single process level and double level three-stage process are modeled to conceptualize CQP. The findings from the output analysis reveal that the quality level approaches the target level at varying points in time. Any spending beyond this point does not have an impact on the quality level compared to the period prior to the Crash Quality Point Spending past this point is futile and these funds could be spent on other quality improvement projects. The special case modeled also illustrates the use of this tool in the selection of processes for improvements based on the quality level of the process. This is an added advantage in scenarios where funds are limited and management is constrained to improve process quality with limited funds.
Using a real world example validates the proposed CQP methodology. The results of the validation indicate that the model developed can assist managers in forecasting the budget requirements for quality spending based on the quality improvement goals. The tool also enables managers to estimate the point in time at which allocations of funds may be directed for process reengineering. The CQP method will enable quality improvement professionals to determine the economical viability and the limits in expenditures on quality improvement. It enables managers to evaluate spending alternatives and approximate when the point of diminishing return is reached.
Hosni, Yasser A.
Doctor of Philosophy (Ph.D.)
College of Engineering
Industrial Engineering Management Systems;
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Length of Campus-only Access
Doctoral Dissertation (Open Access)
Ferreira, Labiche, "Crash Quality- An Approach For Evaluating Spending on Quality Improvement Initiatives" (2000). Retrospective Theses and Dissertations. 1836.
Contributor (Linked data)
Hosni, Yasser A. [VIAF]
Hosni, Yasser A. [LC]