Tai, Chiu-yung (1987, ASQC) National Chiao Tung University, Hsin-Chu, Taiwan, Republic of China
In recent years the consumer has developed higher expectation of the quality of products and services. There are at least several reasons as follows:- Due to the increase of national income and enhancement of general living standards, more and more people demand high quality product.- Keen competition among companies have provided the consumer with a wider range of choices for the same line of products.- The advancement of technology made available the production of high precision and higher reliability goods. The maintenance cost of these products have increased rapidly, sometimes even higher than its original purchase prices.- Modern life is "life behind the quality dikes". People depend largely on the quality of products and services. The faulty components of automobile may cause traffic accident, the massive power failure can paralyze entire city, and unsafe drug put on the market may lead to disasters.The consumer is constantly comparing one's product with the competitor's. If the products of competitor shows superior performance, his market share will grow rapidly. It is becoming increasingly evident in the West that the secret of Japanese management is due to their management policy that "creates better product for the customer and lower cost for the company".Japanese work constantly to improve the quality of their product and reduce the cost. Many western companies emphasize quality improvement by relaying heavily on technological breakthrough and ttach much importance to innovation and invention. But there seems to be a greater belief in human potential in Japan. Japanese concentrated their attention on improvement of quality and cost reduction on simple things -- common sense, basic ideas, constant effort, and attention to why and how things work. They do everything to use the existing facilities more effectively.Edward G. Schilling had pointed out that Shewhart had a dream -- "SADE-Q", which means "Satisfactory, Adequate, Dependable, Economic Quality". We will discuss in this paper how to use Value Engineering/Value Analysis techniques and others to reduce cost and improve quality of product, so that quality products can be manufactured economically. This will enhance the competitiveness of the product in the market and the profitability of the company.