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Financial Justification of Nondestructive Testing
Cost of Quality in Manufacturing




ISBN 9780849397196
Published August 15, 2006 by CRC Press
234 Pages - 64 B/W Illustrations

 
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Book Description

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.

Table of Contents

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

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Reviews

" …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