Title

An integrated cost model with possible reduction of rework/scrap costs

Date of Award

2007

Degree Type

Thesis

Department

Industrial and Manufacturing Systems Engineering

Rights

CC BY-NC-ND 4.0

Abstract

This research addresses the problem of reworking of defective items and develops an integrated cost model so as to minimize the extra costs of reworking/scraping of work-pieces. Items to be reworked are the results of quality problem. To improve a product's quality, the selection of process target is extremely important since it directly affects the process defective rate, part cost, rework/scrap cost, and loss to customer due to deviation of product from desired specification. The amount of investment necessary to economically correct a defective process is still an issue of research. This research is a contribution of this type of problem. Specifically, we investigate the possible economic investment in a process to reduce its variance and taking the process mean close to target, which is ultimately the reduction of waste like rework/scrap. Based on this model, management can evaluate the quality investment in order to get a significant financial return.