A Novel Rework Costing Methodology Applied To a Bus Manufacturing Company

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This paper focuses on the quality costs analysis in the automotive industry, specifically a bus manufacturing company. The main goal was to improve the quality costs indicator, by providing means to evaluate the failure cost within the productive process. Kaizen-lean principles were used as methodology. A quality cost analysis was made based on literature review and in an ISO standard in quality costs. Process analysis was made based on the PDCA (Plan, Do, Check, Act) cycle. As the main achievements of this article, the quality costs were identified as well as its sources. Then, by collecting a very significant amount of data, from various departments, regarding each of the identified costs, it was possible to measure these costs and create a database to scorecard them – including rework costs. Due to the lack of rework costs information, a great part of this analysis focused on data collection and estimating/calculating these associated costs. Thus, it was possible to develop associated KPI’s (Key Performance Indicators) to support decision making and a graphic indicator to show the overall balance between quality costs and non-quality costs. In this process, some difficulties were found as well as some opportunities for improvement. The critical ones were implemented during this project, while the others are scheduled for future work. In terms of a more technological approach to these studies, some autonomous systems can exist, although it comes at a great cost. However, the 4.0 Industry concept is evolving and fits perfectly in the quality costs monitorization context: an integrated information system with a global data network allows for a quick check-up of all the quality costs, by category, while freeing employees from doing this work manually.