Analysis of Internal Failures. An Applied Study at the Jordan Vegetable Oil Industries Co.

Ali Hadi Jebrin

Abstract


The Importance of this research stems from the noticeable internal failures, as percentage of total production, of the firm under study.
Quality cost system, proposed by (ASQC), was applied with some modifications to fit local conditions and data availability. Both inputs and outputs within the system are expressed in cost terms, cost of inputs comprise costs of "Prevention" from Internal failures and "appraisal" cost. Cost of outputs Include, theoretically, both costs of "Internal" and "external" failures, However the last cost was excluded because the main emphasis, is the research is on "Internal failures". Depending on cost indicators, the impact of input cost on internal failures was subjected to an analytical study.
The hypothesis formulated for testing was company as follow:
"Inputs of the quality cost system (represent by prevention and appraisal costs) are interrelated with its outputs (Cost of Internal failure), tending towards cost minimization of the total system, if quality oriented management is assumed"
Two main analytical devices were used:
Pareto distribution (whereby the "vital few" are distinguished form the "trivial many" and trend analysis.

Keywords


Quality Cost System, Failure, Appraisal Cost, Prevention Cost.

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