1st Edition

Financial Justification of Nondestructive Testing Cost of Quality in Manufacturing

By Emmanuel P. Papadakis Copyright 2007
    234 Pages 64 B/W Illustrations
    by CRC Press

    Finance is not, in general, a part of the curriculum for scientists, engineers, and even nondestructive testing (NDT) specialists. Therefore, justifying proposals for new methods and equipment that may seemingly add a modicum of cost to the production process can be problematic. Financial Justification of Nondestructive Testing not only explains how 100% inspection by high-tech methods can save money for a manufacturing organization, but also explains how to justify this cost to upper management.

    Placing NDT in the historical context of quality and inspection, the author demonstrates three methods of calculation for proving the validity of NDT. He includes a forum of arguments, for and against, on the use of NDT; covers how NDT relates to quality standards like ISO-9000; and provides new examples of successful NDT. The book draws on examples from real life, demonstrating use of 100% NDT in factory situations when proven justified by financial calculations. It also describes high-tech inspection technology in the context of modern ISO Quality Standards, Total Quality Management theory, and Statistical Process Control.

    Inspection by means of NDT is a process that has a definite place in the big picture of quality and cost-effective manufacturing. Obtaining finance is key to the implementation of NDT, yet financial calculations are often the stumbling block to getting the needed approvals. Demonstrating how to apply financial formulas to prove or disprove the utility of 100% NDT, Financial Justification of Nondestructive Testing helps you build the financial case for your NDT projects.

    THE BIG PICTURE OF QUALITY
    What Quality Means to People
    Trying to Manage Quality
    ISO-9000 as the Management Standard for Quality
    (Revised 2000)

    HOW WE GOT TO WHERE WE ARE
    Early Philosophy of Manufacturing
    Taylor Management Method and Mass Production:
    Our Twin Nemesis
    Quality Degradation under Taylor Management
    The Inspector as the Methodology to Rectify Quality
    Adversarial Confrontation: Inspector as Cop and Laborer as Crook
    Ineffectuality of Inspector to Improve Quality
    The "Perfect" Inspector: Automated 100% Inspection by Electronics
    Fallacies of Early Implementation of 100% Inspection
    The Root Problem: Out-of-Control Processes

    OUT OF CONTROL, UNDER CONTROL, AND ACHIEVEING CONTROL FOR PROCESSES
    Out of Control as a Question of Information
    Statistical Process Control (SPC) to Get Information
    A Review of Statistical Process Control
    Automated Run Rules with Computers
    Statistical Process Control Results as Statistics
    Out-of-Control Quarantining Versus Just-in-Time Inventory

    TOTAL QUALITY MANAGEMENT WITH STATISTICAL PROCESS CONTROL AND INSPECTION
    Total Quality Management and Deming's Fourteen Points
    Deming's 14 Points Taken Sequentially
    Summary

    ISO-9000 WITH STATISTICS AND INSPECTION
    Background
    ISO-9000: Keeping a Company under Control
    Statistical Process Control and Statistics within ISO Philosophy in the 1990 Version
    Inspection in ISO-9000-1990
    Changes in Emphasis in the ISO-9000-2000 Version
    Overview of Sections 4 through 8
    Failure Modes and Effects Analysis
    How Does NDT Fit into ISO-9000-2000?
    Summary

    STATISTICAL PROCESS CONTROL AS A PREREQUISITE TO CALCULATING THE NEED FOR INSPECTION
    Recapitulation of Statistical Process Control
    Necessary Data
    The Costs of Inspection and the Detrimental Costs of Not Inspecting
    Summary

    THREE FINANCIAL CALCULATIONS JUSTIFYING 100% NONDESTRUCTIVE TESTING
    Introduction
    DIC: Low Investment
    TARR or IRR: High Investment and Long-Term Usage
    Productivity, Profitability, and Revenue Method: Nano-Economics

    HIGH-TECH INSPECTION METHODS
    General
    Various Classes of Methods: NDT and Others
    Correlations and Functions Relating Measurements and Parameters

    REAL MANUFACTURING EXAMPLES OF THE THREE FINANCIAL METHODS OF CALCULATION AND OF REAL DECISIONS MADE ON THE BASIS OF THOSE CALCULATIONS
    General
    Examples of the Deming Inspection Criterion (DIC) Method
    Examples of TARR and IRR Methods
    Examples of the Productivity, Profitability, and Revenue Method
    Summary

    NONDESTRUCTIVE INSPECTION TECHNOLOGY AND METROLOGY IN THE CONTEXT OF MANUFACTURING TECHNOLOGY AS EXPLAINED IN THIS BOOK
    Emphasis
    Chronological Progression
    References
    Related Titles
    Index

    Biography

    Emmanuel P. Papadakis

    " …provides management with a cogent, comprehensive, informed explanation of how inspection of products by high-tech methods can save money for a manufacturer and how to explain and justify the necessary expenses associated with product testing to upper management and stockholders….A Superbly organized and presented introduction and instruction manual on this specialized aspect of manufacturing, 'Financial Justification on Nondestructive Testing' is a core addition to profession, corporate, and academic library quality control reference collections and supplemental reading lists."
    - James A. Cox in The Midwest Book Review , February 2007