In typical manufacturing environments, the most visible costs of quality are rework and scrap costs, as well as quality department costs. These are often available from standard cost accounting systems. The true costs of internal failures, however, include a much broader range of costs such as support personnel, inventory, equipment utilisation and procurement costs. This case study of two precision machine shops (450 to 540 direct operators with comparable rates of rework and scrap for the six-...

BPIR Categories

14.3.2 Implement an improvement approach/method/technique
5.5.3 Improve process/product performance

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