Quality Control Scheme Selection with a Case of Aviation Equipment Development

Abstract

Due to the complex outsourcing characteristics of aviation equipment development, one key issue is how to coordinate quality and cost decisions during development. This article focuses on the quality control plan selection from the multilevel perspective and builds a multilevel algorithm. Considering a complex research and development (R&D) project involving an integrator (client, tier 1 in a supply chain) and a contractor (tier 2 in a supply chain), this study builds two models by taking two different kinds of decision sequences into account. In the first case, the client moves first (i.e., the client makes decision first) while the contractor is the first mover in the second case. Two objectives are considered: the quality improvement rate and the resource cost. The results show that it is not necessary for the client to be the first mover in the decision-making process when alternative plans show no obvious difference in both the quality improvement rate and resource cost. In addition, because of the transitivity of quality objectives and resource constraints, the component quality from lower level will take effect on upper-level quality. Moreover, we find that the client, as the first mover, has a marked impact on the total quality improvement rate of the project only when alternative plans show obvious differences in either the quality improvement rate or the resource consumption. Our study offers insights on the importance of exploring the relationship of decision sequences on quality plans for a project manager.