A Simulation Approach to Evaluate Quality/Cost Management Decisions

Mohamed Khaled, Omar and Nor Akramin, Mohamad and Sharmeeni, Murugan (2010) A Simulation Approach to Evaluate Quality/Cost Management Decisions. Project Report. UTeM, Melaka, Malaysia. (Submitted)

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Abstract

In this paper the author will be presenting the cost of quality using a simulation approach. As a well known fact quality are at all times being the main criteria in achieving total customer satisfaction. Cost is always incurred in achieving better quality product. This cost incurred is known as the cost of quality. Cost of quality consist of four general parameters which are the prevention cost, appraisal cost and failure costs where failure costs can be further divide internal failure cost and external failure cost. Simulation is used to gain insight into the operation of a system where it acts a tester to new models. In reality simulation models are the only possible method seen for experimentation with system that can't be disturbed. Hence simulation models are the best way use to represent the variability, interconnectedness and complexity of a system. In this paper, the author will develop a mathematical model that can precisely represent the different components of cost of quality and to construct a simulation model that can represent the mathematical model. Finally the author will create some managerial decision strategies to use on the developed simulation model to investigate the impact of such decisions on cost of quality.

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