Using Capacity Simulation for Quality Goal Setting

Abstract

Quality improvement continues to be a major concern in industries. Yet it often takes place without a formal evaluation of the possible expenditures and expected quality improvement target involved. Expecially the inspection and rework cost structure and the inspection timing are the major factors to be decided in manufacturing strategies. This paper will propose a computer simulation model for evaluating 3 different manufacturing strategies with regard to inspection and rework cost and the inspection timing in order to implement quality improvement program cost-wise effectively. Computer simulation technique can be used as a decision support aid. Through statistical estimation of specification limits prior to run simulation, we can anticipate the results and validate simulation model as well. The objective of this research is to define an quantify the cost of quality andd to demonstrate the use of simulation technique in quality improvement goal-setting with proposed the across-the-board variance reduction technique.