Abstract/Details

A method for analyzing the characteristics of purchasing quality costs using a probabilistic model with random input parameters


1997 1997

Other formats: Order a copy

Abstract (summary)

This dissertation develops a technique for predicting purchasing quality costs and studying their behavior as random variables. The resulting model extends prior research which treated purchasing costs deterministically and it thereby provides management with a valuable decision and planning tool. This is important because the trend is for companies to place an increasing reliance on purchased components.

Expressions for the expected cost of three alternative policies are developed: incoming evaluation of components, evaluation of components at the supplier, and waiving of product evaluation with a review of supplier data only. The cost of off-site evaluation (at the supplier), as an alternative to incoming evaluation, has not been considered in previous literature. Important quality cost inputs are treated as random variables with frequency distributions estimated from company historical data.

In critical applications where safety of the end user is the primary concern, it is desirable to detect faulty components at the earliest possible stage in the production flow, and some form of product inspection will always be desirable. The model proposed in this dissertation is particularly suitable under these conditions.

The model enables the management practitioner to justify switching between policies based on expected costs. Cost data from a small U.S. Government contractor demonstrates the usefulness and application of the model. A computer simulation is used to illustrate the application of the model and a method for developing probability distribution functions from empirical data is discussed and demonstrated. The simulation results suggest that an evaluation policy based on management consensus or intuition may not always be the lowest cost policy.

Indexing (details)


Subject
Industrial engineering;
Management
Classification
0546: Industrial engineering
0454: Management
Identifier / keyword
Social sciences, Applied sciences, production flow
Title
A method for analyzing the characteristics of purchasing quality costs using a probabilistic model with random input parameters
Author
Arnheiter, Edward David
Number of pages
156
Publication year
1997
Degree date
1997
School code
0118
Source
DAI-B 58/09, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
ISBN
9780591597523, 0591597527
Advisor
Giglio, Richard J.
University/institution
University of Massachusetts Amherst
University location
United States -- Massachusetts
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
9809304
ProQuest document ID
304376959
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/304376959
Access the complete full text

You can get the full text of this document if it is part of your institution's ProQuest subscription.

Try one of the following:

  • Connect to ProQuest through your library network and search for the document from there.
  • Request the document from your library.
  • Go to the ProQuest login page and enter a ProQuest or My Research username / password.