Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Poor quality cost in the supply chain
2000 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

By combining a powerful philosophy with a practical technique, cost of quality systems makes quality improvements justifiable for just about every business organisation. One of the problems Volvo is facing today is how to evaluate the suppliers in a correct way to know where the capacity should be spent to increase the quality. This is one of the big reasons for Volvo Truck Corporation to initiate this investigation. The purpose of the investigation was to create a model that expresses the costs created when external suppliers make errors. The final aim was to have a measurement that expresses the performance of a supplier and each of his mistakes in monetary terms. The method used to accomplish the purpose is based on case study methods and theories about quality in general as well as Total Quality Management and Poor Quality Cost have been used. Before identifying which poor quality costs should be investigated, a decision about using a delimited variant of Juran’s PAF (Prevention, Appraisal, and Failure) model as a base was made. With this model as a base, a theoretical model was created out of categories found in previous investigations and adopted to Volvo. The theoretical model consists of one Volvo part and one supplier part. The investigation at the suppliers and at the Volvo plants used the theoretical model as a base to find the costing areas and the cost of each category was determined. The investigation is divided into two parts, one preliminary study of one Swedish plant, Tuve, and some Swedish suppliers. The second part of the investigation is a global study of the Volvo plant in Gent and one Belgian supplier. The global investigation was made to confirm the results in the preliminary study. The result of the investigation is a cost model in Excel consisting of different cost categories, bases and error categories. The user of the cost model can in this way determine how many errors of different kinds one supplier has made during a certain period and thereby be able to see the final cost of his mistakes for both Volvo and for the supplier himself. The results from the two investigations are quite similar and therefore we consider the model to be valid to be used globally. We still recommend Volvo to make plant specific studies at each site. Another recommendation is to have the iceberg model in mind to know that the cost in the model is only the top of the iceberg. This is very important when making decisions about quality improvements.

Place, publisher, year, edition, pages
2000.
Keywords [en]
Technology, quality costing, poor quality costing, nonconforming, material, quality performance measurement, supply chain, TQM, Quality control, supplier performance measurement, quality, measurements, quality improvements, kvalitet, kvalitetsbristkostnader
Keywords [sv]
Teknik
Identifiers
URN: urn:nbn:se:ltu:diva-48838ISRN: LTU-EX--00/295--SELocal ID: 64330483-e160-463f-af7f-f4b15dc65ec1OAI: oai:DiVA.org:ltu-48838DiVA, id: diva2:1022182
Subject / course
Student thesis, at least 30 credits
Educational program
Industrial and Management Engineering, master's level
Examiners
Note
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

Open Access in DiVA

No full text in DiVA

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 63 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf