System Dynamics Approach for Modeling Cost of Quality
Volume 8, Number 6, November 2012 - Paper 4 - pp. 625-634
BISWAJIT MAHANTY1, V.N.A. NAIKAN2, and THULESWAR NATH31,2 Indian Institute of Technology, Kharagpur, India
3 Assam Engineering College, Guwahati, India
(Received on January 16, 2012 and revised on August 28, 2012)
This paper presents the dynamics of quality costs in an Indian manufacturing company. A system dynamics model is developed for this purpose. The new features of the model are: a) time dependent deterioration process, b) formation of quality perception, and c) market reaction. The effects of investments on quality activities are experimented by simulation runs. A number of policy runs presented in this paper quantifies the extents of such investments in order to achieve the best possible results.
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