A study on economics of quality utilizing payback period
| Autor: | Hsueh-Ming Lu, 呂學明 |
|---|---|
| Rok vydání: | 2006 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 94 In this modern age of economic globalization, businesses throughout the world are faced with unprecedented competition in the consumer-driven market. The key to success against such fierce competition is the maintenance of the highest possible quality. The mass’s expectation to the quality will change through the time. Thus, if a business can drastically improve the quality of its product in the shortest time while spending the cost as little as possible, this would offer a distinct competitive advantage for this business in the marketplace. In recent years, to maintain this advantage, it is necessary for businesses to continually improve the quality of its product or service in order to meet the ever-changing and demanding expectations of the consumers. Under the premise of the investment benefits, the business must emphasize the economic effect of the quality investment to appease the consumers’ high quality need. Juran（1951）had described the model of quality cost, of which the main concept is that there is a trade-off of the prevention cost and the failure cost. In essence, the best quality level should be attained while taking into the account the two costs in order to maintain the lowest level of total quality cost. However, it recently became evident that the lowest point of the total quality cost does not translate well into the economic benefit. Thus, Beruvides and Chiu have tried to use the concept of capital budgeting to advance Economic Inflection Point of the quality economics model, in order to find the best economic effect timing in quality investment. This research is based on the basic concept of the Economic Inflection Point model, and use different evaluation ways to re-examine the Economic Inflection Point model, we also expect that this research can provide information to the senior management in decision making. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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