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A Simple Model for Identifying Costs of Quality

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2020 ASEE Virtual Annual Conference Content Access


Virtual On line

Publication Date

June 22, 2020

Start Date

June 22, 2020

End Date

June 26, 2021

Conference Session

Engineering Management Division 1: The Practice of EMD

Tagged Division

Engineering Management

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Mustafa Shraim Ohio University

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Dr. Mustafa Shraim is an Assistant Professor in the Department of Engineering Technology & Management at Ohio University in Athens, Ohio. He received both of his B.S. and M.S. degrees from Ohio University in 1986 and 1989, respectively. He received his Ph.D. in Industrial Engineering from West Virginia University in 1996.

Dr. Shraim’s research interests are in the area of quality engineering. Specifically, they cover Lean and Quality methods and including incorporating experimental design and statistical process control to optimize operations. Other research interests include the Deming System of Profound Knowledge (SoPK), developing continuous improvement programs as well as sustainable management systems based on ISO 9001, ISO 14001, and other international standards.

He has over 25 years of experience in the quality management field as a quality engineer, corporate quality manager, consultant and trainer. His experience is extensive in quality management systems as wells as Lean and Six Sigma methods. In addition, he coached and mentored Green & Black Belts on process improvement projects in the manufacturing and service industries.

Dr. Shraim is a Certified Quality Engineer (CQE) & a Certified Six Sigma Black Belt (CSSBB) by The American Society for Quality (ASQ). He is also a certified Quality Management Systems (QMS) Lead Auditor by the International Register of Certificated Auditors (IRCA) in London. He was elected a Fellow by ASQ in 2007.

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Customer satisfaction drives quality improvement and innovation initiatives for many organizations. Sources of data for such initiatives come from both internal processes as well as the customer. Costs of quality (COQ), with emphasis on failure costs, have been used for managing quality and prioritizing actions for decades because of their appeal to top management. These costs are divided into two groups: conformance and nonconformance. Conformance costs can belong to either the prevention or appraisal categories while nonconformance or failure costs can be either internal or external. External failure costs result from the negative experience customers have with products and services. Typical COQ programs include readily identifiable costs such as product returns or scrap. However, many hidden costs can be challenging to correctly identify or may seem to belong to more than one category. In any case, failure to identify a given cost as a quality cost or incorrectly categorizing it may result in misleading decision on actions to improve quality. In this paper, a model will be proposed for correctly categorizing costs of quality. If the cost does not belong to any category, it will be identified as such (not a quality cost). The proposed model will be used as a teaching tool in a senior-level quality improvement course at Ohio University. The model will be tested with cost examples using the following questions: Can students using this model correctly identify whether a given cost is a quality cost? and (2) Do students using the model achieve significantly better results in correctly categorizing COQ than the traditional method for teaching the subject? The same set of costs will be used to answer these questions

Shraim, M. (2020, June), A Simple Model for Identifying Costs of Quality Paper presented at 2020 ASEE Virtual Annual Conference Content Access, Virtual On line . 10.18260/1-2--34051

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