Title :
Differential cost of quality
Author :
Fife, J. Michael ; Widener, D. Dax
Author_Institution :
Solar Energy Bus. Unit, Adv. Energy Ind., Bend, OR, USA
Abstract :
The concept of differential cost of quality, C, is introduced as an expression of the urgency of implementing a corrective action for a known quality or reliability problem affecting fielded equipment and equipment currently being shipped. C can be used to prioritize the corrective action against other improvement opportunities. The method of calculating C" involves three steps: 1) identifying and quantifying the significance of the problem, 2) determining if a retrofit or respond (fix on fail) approach is optimal, and 3) calculation of the differential cost of quality which expresses the urgency.
Keywords :
maintenance engineering; product quality; reliability; differential quality cost; reliability problem; retrofitting; Business; Industries; Maintenance engineering; Marketing and sales; Reliability; Solar energy; Warranties; cost of quality; margin analysis;
Conference_Titel :
Reliability and Maintainability Symposium (RAMS), 2012 Proceedings - Annual
Conference_Location :
Reno, NV
Print_ISBN :
978-1-4577-1849-6
DOI :
10.1109/RAMS.2012.6175466
