A Research on the Development of Quality Cost Management System for Power Industry
Myong Chang Lee, Bong Sun Hwang, Sang Jun Park, Min Kim, Dong Chun Kim, Wan Seon Shin · Journal of the Korean society for quality management · 2016
Purpose: The primary objective of this case study is to establish a COQ(Cost of Quality) management system for power generation industries. Key topics of this study include collecting COQ elements, their classifications, COQ computation formula, and determining COQ improvement projects. Results: A comprehensive set of COQ elements have been isolated for electric power generation companies. The COQ elements were classified in such a way that they could be managed according to the PAF model as well as the SIPOC diagram. This study showed that a systematic approach could be established for monitoring the COQ elements and using them in the process of improving quality competitiveness. Methods: The PAF(Prevention-Appraisal-Failure) model has been employed in the process of collecting COQ elements for a power generation company. All the cost of quality elements were first examined through an extensive review of articles and books in the field of quality. The cost elements were then refined and augmented by conducting a comparative study with international standards. The COQ elements have been verified by a group of quality managers and classified according to both the PAF model and the SIPOC diagram for better understanding in the entire organization. An improvement strategy has been also proposed by using a typical COQ level of power generation companies. Conclusion: The conventional PAF model was used in establishing a COQ management system for power generation industries. This case study illustrates the procedure about identification, classification and computation of quality costs, including selection of improvement projects. The system can be used not only for observing the current state of cost elements related to quality, but also for planning an improvement strategy using the ratio of cost classification.