A simulation approach to evaluating quality/cost decision scenarios

The concept of “ZD” (Zero Defects) and “Do It Right The First Time” as advocated by Crosby has gained momentum among Japanese industries such that North American industries find themselves pressured to change from practicing AQL in favor of ZD. However, many companies effect the change without assessing its cost/benefit impact. This paper presents a simulation approach to assessing the impact of quality decisions on a production process and the associated impact on cost and on potential gain.