IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v37y1991i11p1365-1376.html
   My bibliography  Save this article

Interactive Process Quality Improvement

Author

Listed:
  • Richard L. Marcellus

    (Department of Industrial Engineering, Northern Illinois University, DeKalb, Illinois 60115)

  • Maqbool Dada

    (Department of Information and Decision Sciences, University of Illinois at Chicago, P.O. Box 4348, Chicago, Illinois 60680)

Abstract

An ongoing production process produces defective parts at random intervals. Each defective part provides a learning opportunity which the decision maker may use to improve the process by investing resources to identify and remove the causes of the defective. For various cost criteria, it is optimal to invest in learning until the probability of producing a defective becomes sufficiently small. This policy has economic interpretations in terms of marginal benefits. In addition, the optimal policy for expected discounted present cost has an interpretation in terms of tradeoffs between "cost of failure" and "cost of prevention". The shape of the tradeoff curve gives insight into the controversy between the traditional and zero defects views towards cost of quality.

Suggested Citation

  • Richard L. Marcellus & Maqbool Dada, 1991. "Interactive Process Quality Improvement," Management Science, INFORMS, vol. 37(11), pages 1365-1376, November.
    • Handle: RePEc:inm:ormnsc:v:37:y:1991:i:11:p:1365-1376
    DOI: 10.1287/mnsc.37.11.1365
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.37.11.1365
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.37.11.1365?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paulson Gjerde, Kathy A. & Slotnick, Susan A., 2004. "Quality and reputation: The effects of external and internal factors over time," International Journal of Production Economics, Elsevier, vol. 89(1), pages 1-20, May.
    2. Linguo Gong & James Pruett & Kwei Tang, 1997. "A Markovian model for process setup and improvement," Naval Research Logistics (NRL), John Wiley & Sons, vol. 44(4), pages 383-400, June.
    3. Cheong Ng, Wing & Van Hui, Yer, 1997. "Economic design of a complete inspection plan with interactive quality improvement," European Journal of Operational Research, Elsevier, vol. 96(1), pages 122-129, January.
    4. Ying-Ju Chen & Brian Tomlin & Yimin Wang, 2017. "Dual Coproduct Technologies: Implications for Process Development and Adoption," Manufacturing & Service Operations Management, INFORMS, vol. 19(4), pages 692-712, October.
    5. Demeester, Lieven L. & Qi, Mei, 2005. "Managing learning resources for consecutive product generations," International Journal of Production Economics, Elsevier, vol. 95(2), pages 265-283, February.
    6. Anita L. Tucker, 2007. "An Empirical Study of System Improvement by Frontline Employees in Hospital Units," Manufacturing & Service Operations Management, INFORMS, vol. 9(4), pages 492-505, April.
    7. Bendavid, Illana & Herer, Yale T., 2009. "Economic optimization of off-line inspection in a process that also produces non-conforming units when in control and conforming units when out of control," European Journal of Operational Research, Elsevier, vol. 195(1), pages 139-155, May.
    8. Christopher D. Ittner & Venky Nagar & Madhav V. Rajan, 2001. "An Empirical Examination of Dynamic Quality-Based Learning Models," Management Science, INFORMS, vol. 47(4), pages 563-578, April.
    9. Mellat-Parast, Mahour & Digman, Lester A., 2008. "Learning: The interface of quality management and strategic alliances," International Journal of Production Economics, Elsevier, vol. 114(2), pages 820-829, August.
    10. Stephen M. Gilbert & Hena M Bar, 1999. "The value of observing the condition of a deteriorating machine," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(7), pages 790-808, October.
    11. George Li & S. Rajagopalan, 1998. "Process Improvement, Quality, and Learning Effects," Management Science, INFORMS, vol. 44(11-Part-1), pages 1517-1532, November.
    12. Yimin Wang & Wendell Gilland & Brian Tomlin, 2010. "Mitigating Supply Risk: Dual Sourcing or Process Improvement?," Manufacturing & Service Operations Management, INFORMS, vol. 12(3), pages 489-510, September.
    13. Narayanan, V. G. & Davila, Antonio, 1998. "Using delegation and control systems to mitigate the trade-off between the performance-evaluation and belief-revision uses of accounting signals," Journal of Accounting and Economics, Elsevier, vol. 25(3), pages 255-282, June.
    14. Barad, M. & Bennett, G., 1996. "Optimal yield improvement in multi-stage manufacturing systems," European Journal of Operational Research, Elsevier, vol. 95(3), pages 549-565, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:37:y:1991:i:11:p:1365-1376. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.