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Procedia Manufacturing 11 (2017) 2139 – 2146

27th International Conference on Flexible Automation and Intelligent Manufacturing, FAIM2017,

27-30 June 2017, Modena, Italy

Development of Hybrid Quality Management System

for Construction Equipment Part Industry
Hong Jin Jeonga,b, Bo Hyun Kima*, So Young Junga
a
IT Converged Process Group, Korea Institute of Industrial Technology, 143, Hanggaul-ro, Sangnok-gu, Ansan-si, 15588, Republic of Korea
b
Dept. of Industrial Management Engineering, Hanyang UNIV., 55, Hanyangdaehak-ro, Sangnok-gu, Ansan-si, 15588, Republic of Korea

Abstract

By combining the advantages of a packaged system that increases the recyclability of a system while decreasing the time required
for system building, with the advantages of a customized system that improves the suitability of enterprise
s work process, this
study is to development the hybrid quality management system (QMS) containing the advantages of the two systems. In system
design, the common functional requirements that are used in all companies are packaged as quality management platform (QMP)
and combined with the specialized functional requirements preferred by individual company to build a hybrid QMS. This study
implements the prototype hybrid QMSs as proposed in study and applies them to two parts manufacturers to show their positive
effects.

©
© 2017
2017TheTheAuthors.
Authors.Published
Publishedby by
Elsevier B.V.B.V.
Elsevier This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility ofthe scientific committee of the 27th International Conference on Flexible Automation and
Peer-review under responsibility of the scientific committee of the 27th International Conference on Flexible Automation and
IntelligentManufacturing
Intelligent Manufacturing.

Keywords:Quality management system, Quality management system architecture, Requirements elicitation, Requirement development process,
Construction equipment part industry

* Corresponding author. Tel.: +82-31-8040-6164; fax: +82-31-8040-6170.

E-mail address: bhkim@kitech.re.kr

2351-9789 © 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of the 27th International Conference on Flexible Automation and Intelligent Manufacturing
doi:10.1016/j.promfg.2017.07.345
2140 Hong Jin Jeong et al. / Procedia Manufacturing 11 (2017) 2139 – 2146

1. Introduction

Korean construction equipment part enterprises (CEPEs) are very dependent on finished product enterprises and
play a role core of mainly producing modules and parts. Because most CEPEs lack the ability to develop modules
and parts and are small, they have make-to-order production that depends on obtaining an order from finished
product enterprises [1]. Due to the aforementioned characteristics of construction equipment part (CEP) industry,
quality management of part enterprises focuses on dealing with customers
Few
CEPEs have organized quality
control process and even if they have the process, it quite differs from actual business. When comparing the actual
status of quality management of Korean CEP industry with that of Japanese CEP industry
it was found that fraction
defective in Korean CEP industry is 18 percent higher than fraction defective in Japanese CEP industry while
quality certification in Korean CEP industry is 20 percent lower than quality certification in Japanese CEP industry
[2].
This study aims to establish quality management system (QMS) of Korean CEP industry and develops
customized type QMS. Most CEPEs try to build packaged type information system first to prepare their own QMS
but success rate of introducing the information system is 15% or fewer [3]. The main reason for which CEPEs fail in
building the information system is that actual status of quality management task by relevant enterprises is not
reflected properly [4]. In order to solve the problem, it is necessary to analyze the requirements and business process
of CEPEs, develops the customized type information system and applies it. However, it is very difficult for small
and medium enterprises (SMEs) to build up the customized type information system because it requires lots of time
and cost. In order to overcome aforementioned difficulty, this study aims to develop hybrid type QMS that has the
strong points of packaged type QMS and customized type QMS. The basic idea of this study is to analyze the
quality task standard and procedure of CEPEs and to develop quality management platform (QMP) based on the
analysis result. This study aims to collect and analyze additional requirements of individual enterprise to elicit
customized functions and to combine such functions to QMP in order to build a customized QMS. QMS proposed in
this study is a hybrid QMS that customized functions of individual part enterprise are equipped based on packaged
type QMP.
Chapter 2 examines basic concept of QMS and existed studies related to QMS, and Chapter 3 elicits the functions
of QMS. Chapter 4 describes design and implementation of QMS, and Chapter 5 describes cases that QMS was
applied to CEP industry. And the last chapter summarizes the result of this study.

2. Concept of quality management system

This chapter examines types of information system, development of QMS and application cases. Information
system is generally classified into packaged type system and customized type system [5]. Packaged type is the
information system developed by standardized task and process and is quick to be applied to task of the same line of
business. The strength of packaged type system is high reusability of the system, and less time and cost to build it
[6]. On the contrary, because customized type system is a dedicated system to meet tasks, process, and requirements
of an enterprise, it has low reusability of the system, and takes at least six months and costs much to build it.
However, the strong point of the customized type system is capable of building a specialized information system
taking into account enterprise’s business. Table 1 shows a comparison between packaged type system and
customized type system with respect to the reusability, building period, and building cost of the information system.
Generally, QMS is developed and built by enterprises. Relevant existing cases include a case that
design QMS
and production QMS are integrated for quality history management
[7]
a case
that QMS development was made by
reflecting characteristics of batch
process
[8]
and a
case that collection of quality information is considered
significantly for correct quality inspection [9]. In short, the cases are application cases of existing QMS to individual
enterprise and development cases to specify quality management tasks of enterprises.
QMS proposed in the study is different from existed studies in that it targets at whole part industry not individual
part enterprises.
This study is to propose hybrid QMS combining a common packaged system whose strong points

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 Hong Jin Jeong et al. / Procedia Manufacturing 11 (2017) 2139 – 2146 2141

are high reusability, short building period and low building cost with customized functions taking into account
specialized business characteristics of enterprises.
Hybrid QMS consists of QMP which is packaged type, information type and customized function which is
customized type information system. QMP enables all enterprises falling under the same industry to use functions of
the system without special correction. This study aims to develop QMP based on standard quality task and
procedure of construction equipment part industry
which comes under basic function module of hybrid QMS.

Table 1. A comparison of packaged type system & customized type system

Classification Packaged type system Customized type system
Reusability High Low
Building cost Low High
Building period Short Long (at least 6 months)

Customized function module is functions that characteristics of specific enterprises are reflected and a set of
functions that can be only applied to pertinent enterprises and not applicable to other enterprises. Such customized
function module collects and analyzes requirements by enterprises to elicit functions. Fig. 1 shows hybrid QMS that
customized type function module is combined based on abovementioned quality management platform

Fig. 1. Concept of hybrid QMS.

3. Functions of QMS in construction equipment part industry

In order to develop hybrid QMS, first of all this study analyzes standard quality task and procedure of CEP
industry and elicits the functions of QMP. And, it elicits specialized functions which meet the characteristics of
individual enterprise. Because QMP should be used in common in CEPEs, quality task standard and procedure used
in CEP industry should be analyzed. In general CEP industry mainly uses ISO 9000 Family as quality task standard
[10] so that this study analyzes ‘7. Support’ and ‘8. Operation’ of ISO 9001:2015. Fig. 2 shows information flow
among standard quality tasks organized by analyzing thirty two enterprises of structure
hydraulic pressure, power
and attachment parts and modules. At least ten quality management tasks except general QMS are required in CEP
industry.
2142 Hong Jin Jeong et al. / Procedia Manufacturing 11 (2017) 2139 – 2146

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Fig. 2. Information flow among standard quality tasks

Specialized functions are elicited through requirement development process, which consists of requirement
elicitation, requirement analysis, requirement specification and requirement validation as shown in Fig. 3 [11].
Requirement elicitation includes requirement collection from system users and employees. Requirement analysis
involves understanding conflict relation collected from requirement elicitation and solving it. Requirement
specification involves converting organized requirements to required functions, and requirements are converted to
required functions based on performance index [12] in this study. Requirement validation involves checking
whether required function meets requirements.

Fig. 3. Requirement development process

This study collects requirements from 27 people in quality management department
and production department at
enterprise D and H of CEP industry and analyzes them using the development process mentioned above. Table 2
shows specialized functions elicited for each enterprise were in detail. For enterprise D, functions that create

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 Hong Jin Jeong et al. / Procedia Manufacturing 11 (2017) 2139 – 2146 2143

statement of work and manage assembly history while for enterprise H, functions that manage the history of
inspection requested by other departments were elicited.

Table 2. List of customized functions & PI

Specialized functions Performance indicator (PI) of functions

Request for inspection
Requests of inspection

Completion of request for test
Completed inspection request

Registration of assembly tolerance
Model registrations

Product registrations

Preparation of assembly history card
Registrations of daily production

Assembly history cards

Product identification & traceability
Successful inquires

4. Implementation of QMS

As shown in Fig. 4, hybrid QMS proposed in this study has three layers: DB layer, function layer and service
layer. DB layer consists of quality information DB of QMP, information DB of specialized functions, and interface
DB linking to specialized functions and legacy systems. In other words, DB layer plays a key role of managing
quality information related to hybrid QMS, entering and printing out and sharing information via interface between
specialized functions module and legacy systems. Functions of hybrid QMS are largely classified into QMP
modules (common functions) and
customized modules (specialized functions). QMP functions are elicited by
analyzing standard quality task and procedure of CEP industry that all CEPEs can use. Because functions of
customized modules were elicited by analyzing requirements according to individual enterprises, they vary from
enterprise to enterprise. Service layer defines interaction views that a user directly contacts hybrid QMS. For
customized modules, interaction views are configured according to operation environment of system and users.

Fig. 4. System architecture of hybrid QMS

Hybrid QMS
consists of ten QMP modules (twenty six common functions) and two customized modules (five
functions) as shown in Table 3.
QMP system that all CEPEs can use consists of quality information DB, interface
DB, ten QMP modules, and several interaction views for users
Customized modules covers two enterprises’
requirements and each module is used for each enterprise. DB corresponding to customized modules is integrated
2144 Hong Jin Jeong et al. / Procedia Manufacturing 11 (2017) 2139 – 2146

into QMS linked to interface DB of QMP
Service layer
can operate client environment within enterprise or
cloud/web service environment outside enterprise depending on
enterprise’s security policy and provides UI so that
main view can be configured according to users.

Table 3. Functions and modules of hybrid QMS

Classification Detailed functions Modules

PPAP registration of supplier

PPAP
PPAP management of customer

Result of import inspection registration

Inspection
Result of process inspection registration
management
Result of shipping inspection registration

Chart inquiry (CL, UCL,LCL)

SPC
CPK inquiry

Process of 4M change 4M change

4M change check Management

Measuring instrument registration Measuring instrument

Instrument preventive action Management

Nonconformity registration
Quality Process of nonconformity inquiry Nonconformity
management Process average time of nonconformity inquiry Management
platform
Process of Nonconformity cost management

Customer complaint registration

Customer complaint process management Customer
complaint
Process average time of customer complaint inquiry Management
Process of customer complaint cost management

Registration of corrective and preventive action(CPA)

CPA process Management
CPA Management
Process average time of CPA inquiry
Process of CPA cost management

Procedure Documents registration Procedure

Procedure Documents registration inquiry Management

Cost of Quality(CoQ)
Appraisal cost, preventive cost & failure cost management
management

Request of inspection registration

Request of inspection
Request of inspection management
Customized
functions Assembly tolerance registration
Identification &
Card of product traceability registration
traceability
Product traceability management

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 Hong Jin Jeong et al. / Procedia Manufacturing 11 (2017) 2139 – 2146 2145

5. Case study

Hybrid QMS was applied to enterprises H and D of CEP industry having active quality management activities.
The system was applied to enterprise H producing structural parts of construction equipment starting in February
2016 and to enterprise D producing attachment parts of construction equipment starting in March 2016. These two
QMS are hybrid QMS combing QMP with a customize module of inspection request for enterprise H and with a
customize module of identification traceability for enterprise H. Fig. 5 shows images of application cases in
enterprise D and H.

Fig. 5. Application images of hybrid QMS in enterprise D and H

In order to analyze the usefulness of proposed hybrid QMS, this study analyzed key performance indicators (KPI)

first. KPI of enterprise H includes defect rate of outsourced product, defect rate of in-house process, defect rate
detected by clients, failure cost of client field, calibration of meters and 4M management, and that of enterprise D
includes failure cost, number of customer complaint, quality process hours and defect rate. Two enterprises operated
hybrid QMS until January 2017 and obtained meaningful effect such as the reduction of defect rate and quality cost
in quality KPIs. Table 4 shows the comparison result of quality KPIs before and after hybrid QMS is applied.

Table 4. Comparison results of quality KPIs before and after hybrid QMS is applied
Circumstance Current
Company Quality key performance indicator Unit at the application circumstance
(February/March 2016) (January 2017)
Defect rate of outsourced product ppm 630 500

Defect rate of in-house process ppm 300 250

Company H Defect rate detected by clients ppm 90 80

KRW
Failure cost of client field 400 350
1,000
2146 Hong Jin Jeong et al. / Procedia Manufacturing 11 (2017) 2139 – 2146

Calibration of meters % 10 50

4M management (client/vendors) % 40 50

Reduction of F-Cost % 1 0.9

Customer satisfactions Case 610 500

Company D
Quality process hours Min. 60 50

Defects rate ppm 650 500

Conclusion

This study proposed hybrid QMS which has strength of packaged type system and customized type system for
CEP industry. A hybrid QMS constructed in an enterprise consists of QMP (packaged type system) and customized
module which reflects its characteristics of quality management. QMP which can be used by all CEPEs is composed
of ten common modules elicited by analyzing standard quality task, quality information DB and interface DB, some
interaction views for users. This study also developed additional customized modules by analyzing requirements of
individual enterprises and constructed hybrid QMSs for each enterprise.
This study applied hybrid QMSs implemented to two CEPEs
As of January
2017, hybrid QMSs were operated
for about one year in two enterprises. Operation result of hybrid QMS showed that defect rate and quality cost
reduced
The result reveals the usefulness of proposed QMS somewhat but additional studies will be required for
proving its application effect clearly.

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