Abstract
We consider an important topic from the traditional quality literature‐the impact of conformance quality of a manufactured product on the preventive maintenance costs to downstream users of this product. Folk wisdom supports the notion that higher conformance quality translates into lower maintenance costs (as well as other components of life‐cycle costs) for these users. We examine this proposition in some detail on the basis of a failure‐time model that relates conformance quality to reliability. We consider both repairable and nonrepairable items that are maintained by a block‐replacement or a minimal‐repair strategy. In addition to maintenance cycles and costs, we discuss the value of information to the user as to the actual production quality, and the value of inspection.
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