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A Quality Control Model with Learning Effects

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  • Charles H. Fine

    (Massachusetts Institute of Technology, Cambridge, Massachusetts)

Abstract

We present a model that extends a variant of the classic quality control/machine maintenance model by adding the concept of quality-based learning. The extension captures the idea that operators of a production process may be able to discover and eliminate defects in the system if, during an inspection, they find the process to be “out of control.” Thus, the distinguishing feature of the model is that one inspects the process not only for the purpose of repairing the machine, but also in the hope that the machine will be caught in the act of producing defective output, so that a source of problems is uncovered and eliminated. The paper provides a characterization of optimal inspection policies and suggests the managerial implications: Ignoring the learning benefits of inspection and quality control activities may lead to under-investment in quality improvement activities, which, in turn, may hinder both cost and quality competitiveness.

Suggested Citation

  • Charles H. Fine, 1988. "A Quality Control Model with Learning Effects," Operations Research, INFORMS, vol. 36(3), pages 437-444, June.
    • Handle: RePEc:inm:oropre:v:36:y:1988:i:3:p:437-444
    DOI: 10.1287/opre.36.3.437
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    Citations

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    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. Voros, Jozsef, 2006. "The dynamics of price, quality and productivity improvement decisions," European Journal of Operational Research, Elsevier, vol. 170(3), pages 809-823, May.
    3. 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.
    4. J-C Tsou & J-M Chen, 2005. "Dynamic model for a defective production system with Poka-Yoke," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(7), pages 799-803, July.
    5. 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.
    6. Fernando Bernstein & A. Gürhan Kök, 2009. "Dynamic Cost Reduction Through Process Improvement in Assembly Networks," Management Science, INFORMS, vol. 55(4), pages 552-567, April.
    7. Carlos Ocana & Eitan Zemel, 1990. "Learning from Mistakes: A Note on Just-in-Time Systems," Discussion Papers 874, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    8. 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.
    9. Voros, Jozsef, 2019. "An analysis of the dynamic price-quality relationship," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1037-1045.
    10. De Giovanni, Pietro, 2011. "Quality improvement vs. advertising support: Which strategy works better for a manufacturer?," European Journal of Operational Research, Elsevier, vol. 208(2), pages 119-130, January.
    11. Vörös, József, 2008. "A kereslet hatása az árak, a minőség és a fejlesztési döntések dinamikájára [The effect of demand on the dynamics of prices, quality and development decisions]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1094-1115.
    12. Voros, Jozsef, 2002. "Product balancing under conditions of quality inflation, cost pressures and growth strategies," European Journal of Operational Research, Elsevier, vol. 141(1), pages 153-166, August.
    13. Nair, Anand & Narasimhan, Ram, 2006. "Dynamics of competing with quality- and advertising-based goodwill," European Journal of Operational Research, Elsevier, vol. 175(1), pages 462-474, November.
    14. 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.
    15. Vörös, József, 2003. "A minőség figyelembevételének szükségessége az egyensúlyi állapot meghatározásában [The need to consider quality when determining a state of equilibrium]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 6-21.
    16. Rajiv D. Banker & Joy M. Field & Kingshuk K. Sinha, 2001. "Work-Team Implementation and Trajectories of Manufacturing Quality: A Longitudinal Field Study," Manufacturing & Service Operations Management, INFORMS, vol. 3(1), pages 25-42, November.
    17. 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.
    18. Kim, Bowon, 1996. "Learning-induced control model to allocate managerial resources for production technology development," International Journal of Production Economics, Elsevier, vol. 43(2-3), pages 267-282, June.
    19. 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.
    20. 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.
    21. Pietro De Giovanni, 2020. "An optimal control model with defective products and goodwill damages," Annals of Operations Research, Springer, vol. 289(2), pages 419-430, June.
    22. Onesun Steve Yoo & Charles J. Corbett & Guillaume Roels, 2016. "Optimal Time Allocation for Process Improvement for Growth-Focused Entrepreneurs," Manufacturing & Service Operations Management, INFORMS, vol. 18(3), pages 361-375, July.
    23. Hao Zhang & Weihua Zhang, 2023. "Analytical Solution to a Partially Observable Machine Maintenance Problem with Obvious Failures," Management Science, INFORMS, vol. 69(7), pages 3993-4015, July.
    24. Williams, William W. & Tang, Kwei & Gong, Linguo, 2000. "Process improvement for a container-filling process with random shifts," International Journal of Production Economics, Elsevier, vol. 66(1), pages 23-31, June.

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