Investing in quality under autonomous and induced learning

Dogan A. Serel, Maqbool Dada, Herbert Moskowitz, Robert D. Plante

Research output: Contribution to journalArticlepeer-review

Abstract

The reduction of variability in product performance characteristics is an important focus of quality improvement programs. Learning is intrinsically linked to process improvement and can assume two forms: (i) autonomous learning; and (ii) induced learning. The former is experientially-based, while the latter is a result of deliberate managerial action. Our involvement in quality and capacity planning with several major corporations in different industries suggested that it would be instructive to devise a model that would prescribe an optimal combination of autonomous and induced learning over time to maximize process improvement. We thus propose such a model to investigate the optimal quality improvement path for a company given that quality costs depend on both autonomous and induced types of learning experienced on a number of quality characteristics. Several properties of an optimal investment path are developed for this problem. For example, it is shown that decisions maximizing short-term gains may actually lead to suboptimal resource utilization decisions when total costs associated with a longer planning horizon are taken into account. Numerical examples are used to assess the sensitivity of the optimal investment plan with respect to changes in several model parameters.

Original languageEnglish (US)
Pages (from-to)545-555
Number of pages11
JournalIIE Transactions (Institute of Industrial Engineers)
Volume35
Issue number6
DOIs
StatePublished - Jun 2003
Externally publishedYes

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering

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