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Reducing the cost of quality (COQ) through increased product reliability and reduced process variability

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dc.contributor.advisor Alvin W. Drake and Roy E. Welsch. en_US
dc.contributor.author Schiveley, Steven C. (Steven Charles), 1974- en_US
dc.contributor.other Leaders for Manufacturing Program. en_US
dc.date.accessioned 2006-11-08T16:33:02Z
dc.date.available 2006-11-08T16:33:02Z
dc.date.copyright 2004 en_US
dc.date.issued 2004 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/34757
dc.description Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Materials Science and Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2004. en_US
dc.description Includes bibliographical references (p. 61). en_US
dc.description.abstract Today, Dell, Inc. (Dell) spends millions of dollars each year to prevent product defects from reaching the end customer and to manage those product defects that have escaped to the end customer. The cost of the equipment, labor, and materials to prevent and manage product defects is referred to as Dell's Cost Of Quality (COQ). A large percentage of Dell's COQ is spent by warranty-support and customer service organizations (Services). While the costs of defects most directly affects Dell through the expenditures in such Service organizations, the causes of are found predominantly in other organizations, such as Design, Materials, and Manufacturing. Without a causal link which directly ties the costs of quality defects to the causes of quality defects, it is difficult to justify increased quality-improvement expenditures in product design, product validation, component selection, or manufacturing processes. The Cost Of Quality methodology described here is a practical approach to a) quantifying the financial impact of quality defects, b) shifting the problem-solving focus from "find-and-fix" to prevention, and c) prioritizing quality improvement investments based on expected financial return. This methodology aligns well with Dell's focus on financial performance and has provided the foundation for a COQ program which has been adopted by Dell's Executive Office as one of five top cost reduction projects for fiscal years 2005-2007. This paper provides background on the current tools, process, and culture affecting quality at Dell, describes the financial impact of quality on Dell's business, details the evolution of Dell's COQ initiative, and analyzes five possible methods to sustain the COQ effort. en_US
dc.description.statementofresponsibility by Steven C. Schiveley. en_US
dc.format.extent 61 p. en_US
dc.format.extent 5753943 bytes
dc.format.extent 5758463 bytes
dc.format.mimetype application/pdf
dc.format.mimetype application/pdf
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582
dc.subject Sloan School of Management. en_US
dc.subject Materials Science and Engineering. en_US
dc.subject Leaders for Manufacturing Program. en_US
dc.title Reducing the cost of quality (COQ) through increased product reliability and reduced process variability en_US
dc.title.alternative Reducing the COQ through increased product reliability and reduced process variability en_US
dc.type Thesis en_US
dc.description.degree S.M. en_US
dc.description.degree M.B.A. en_US
dc.contributor.department Sloan School of Management. en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Materials Science and Engineering. en_US
dc.contributor.department Leaders for Manufacturing Program. en_US
dc.identifier.oclc 56713227 en_US


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