If the worker does an on-the-spot inspection by looking at the device or by testing it‚ then the cost of fixing the device (rework) is minimal‚ both in terms of the time to fix it and the time lost due to inspection. If‚ on the other hand‚ the error is not identified and the device goes on down the assembly line and is incorporated as a part into a product‚ the cost of rework‚ scrap‚ repair‚ or warrantee claim can become quite high. A simple poka-yoke solution might be that the worker first counts
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matrix and the cause and effect matrix are integrated into the lean transformation framework‚ allowing analysis of the underlying complexity of a product development (PD) system‚ and thus facilitating determination of the root causes of wasteful reworks. Several strategies to transform the current PD process into a lean process are discussed. Besides the two-phase improvement plan‚ a new organizational structure roadmap and a human resources plan are also suggested to support the recommended
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efficiency variance labor activity variance for wheel assembly: parts price variance parts efficiency variance parts activity variance rework spending variance labor price (a.k.a. rate) variance labor efficiency variance labor activity variance for final assembly: parts price variance parts efficiency variance parts activity variance rework spending variance labor price (a.k.a. rate) variance labor efficiency variance labor activity variance for production fixed overhead:
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Quality Cost 1 Quality is defined from the customer´s point of view l Performance l Performance or the primary operating characteristics of a product or service. Example: For a car‚ it is speed‚ handling‚ and acceleration. For a restaurant‚ it is good food. l Features l Features or the secondary characteristics of a product or service. Example: For a TV‚ it is an automatic tuner. For a restaurant‚ it is linen table cloths and napkins . l Reliability l Reliability
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How to get Software Requirements right Abstract The importance of getting the software requirement right has made big difference to so many major projects in the IT industry. Many techniques and solutions have been developed for understanding and getting software requirements right first time in the software development life cycle‚ but fewer people are taking these techniques into account and this is the reason why most of the IT projects are failing. I define here how to get software requirements
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Cost of Quality (COQ) "The cost of quality." It’s a term that’s widely used – and widely misunderstood. The "cost of quality" isn’t the price of creating a quality product or service. It’s the cost of NOT creating a quality product or service. Every time work is redone‚ the cost of quality increases. Obvious examples include: The reworking of a manufactured item. The retesting of an assembly. The rebuilding of a tool. The correction of a bank statement. The reworking of a service‚ such as
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Donner Company Donner Company was established in 1985 and it had specialised in manufacturing circuit boards for experimental devices and for pilot production runs. It also manufactured the printed circuit boards to the specifications of its customers. Some of the characteristics of the industry in which this company operating are as given below • There has been a consistent growth along with other industries like computer‚ telecom‚ and defence establishment related industry. • It is
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THE HUMAN SIDE: BOB SHREDS THE MODIFICATION REQUEST Written by W. Gale Cutler (Research Technology Management‚ March-April‚ 1998‚ pp. 57-58) This article presents a typical human resource problem concerning some dispute between the head of a research department and one of his subordinate leaders on dealing and handling a product safety problem. It was during R&D Budget planning meeting in WYZ Company when the head of Electrical Engineering Research‚ Bob Bateman along with others group leader
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rates‚ or possible bankruptcy. Therefor even if we assumed no cash- flow consequences associated with the change‚ the answer would still be the same. The switch would prevent an unnecessary default on the bank loan if Prime Trust bank refuses to rework the loan covenants. The loan covenant of interest is tangible net worth‚ which the bank has set at a minimum of $12 million. Without the switch‚ the LIFO method would report a tangible net worth of $9‚828‚000‚ which would violate this loan covenant
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An Introduction to Modeling and Analyzing Complex Product Development Processes Using the Design Structure Matrix (DSM) Method Ali A. Yassine Product Development Research Laboratory University of Illinois at Urbana-Champaign Urbana‚ IL. 61801 yassine@uiuc.edu Brief description of the author Ali Yassine is an assistant professor at the Department of General Engineering at the University of Illinois at Urbana-Champaign (UIUC). He is the director of the Product Development Research Laboratory and an
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