A Model for Prioritization of Improvement Opportunities Based on Quality Costs in the Process Interdependency Context

Abstract

In this paper, the PAF (preventive-appraisal-failure) quality costs model is used on the process level, in order to identify those processes which are critical as a top-priority for improvement. The elements of quality costs are considered in relation to the outputs of the processes, where the principle that one process affects the quality of another process by its outputs is taken into account. That is why the failure costs of the affected processes should also be assigned to the quality costs of the observed process. Using the factors proposed in the Process cost model, costs are identified and calculated for each process for two moments: the current (before improvements) and desired (after improvements). Improvements are implemented on the basis of the causes of nonconformity analysis and according to the PAF model assumption that preventive and appraisal activities reduce failure costs and the total costs of quality. The difference between the total costs of quality in two observed moments is seen as the greatest possible quality cost reduction for the observed process. This value is used as a criterion for ranking the processes according to their priority for improvements, taking into account the assumption of the PAF model that greater costs mean lower quality and hence a higher priority for improvement.

Cost Analysis of Water Quality Assessment Using Multi-Criteria Decision-Making Approach

“…Apparaisal Costs: These costs are used to determine the degree to which the characteristics of the products (or services) offered to match the quality characteristics of the reference [42,43]. In the present study, these costs include evaluation costs of subcontractors (Operating contractor), raw water inspection and testing costs, production process inspection costs, nal product inspection and testing costs, quality system audit costs, equipment control costs, Inspection and measurement costs, costs of checking the quality of water stored in tanks and costs of checking the quality of water delivered to subscribers [41,44].…”

Process Approach in Determining the Accounting Model and Quality Cost Analysis

“…ГОСТ 52380. . Процессный подход важен, поскольку организационные системы охватывают совокупность взаимосвязанных процессов, а поведение любой части системы влияет на поведение системы в целом [14].…”