Abstract
In conditions of economic crisis, businesses of construction industry lack the resources to eliminate real risks of non-conformities due differences between construction products and consumers' expectations. In this situation when classic models based on the CAPA become ineffective, the management of non-conformities requires some new acceptable, efficient, and low-cost approaches. The paper describes the original ranking algorithm for measures aimed at reducing the risks in business environment with financing constraints.
Highlights
In the history of any company comes a time when in front of its leadership raises the question about what to do to improve company’s performance? This question is relevant as to a successful enterprise, which has quite a large market share, as well as for a company on the verge of survival
Let there be a set of non-conformities, each of which contains a list of reasons that led to the emergence of non-conformity
L – the number of non-compliances identified in the previous period; L*– the number of possible non-conformities of the planning period; M – the number of different reasons that resulted in non-conformity j; ݂ – the costs of elimination of the reason i, which led to the emergence of nonconformity j; Splan – the amount of funds allocated for corrective measures following the results of the past period; ܼ – the costs of removal of nonconforming products related to the identified nonconformity j; ܼ∗ – the potential costs of the removal of non-conforming products associated with the re-emergence of non-conformity j; 3 Algorithm of designing an effective corrective action plan
Summary
In the history of any company comes a time when in front of its leadership raises the question about what to do to improve company’s performance? This question is relevant as to a successful enterprise, which has quite a large market share, as well as for a company on the verge of survival. Second variant is the choice of measures aimed at eliminating the causes of the most resonant non-conformities that cannot be ignored In both cases, the efficiency of the funds used on the corrective actions is not defined and is not considered. In [6] the author carried out the original ranking algorithm for corrective actions included in the action plan, which aimed at addressing the identified nonconformities and their causes. This article is another attempt to formulate a methodical approach, which is based on an effective governance mechanism of non-conformities, detected in the process of QMS
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
