Cost of quality: Evaluating cost-quality trade-offs for inspection strategies of manufacturing processes

Farooq, Muhammad Arsalan; Kirchain, Randolph; Nóvoa, Henriqueta; Araújo, António

doi:10.1016/j.ijpe.2017.03.019

Cited by 61 publications

(66 citation statements)

References 13 publications

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“…The Prevention-Appraisal-Failure (P-A-F) model categorizes costs into three main categories (prevention, evaluation and failure costs) and manages to capture all costs related to the quality system and product control, as well as costs incurred when the product fails to meet requirements (Teli et al, 2017). Chatzipetrou and Moschidis (2017), Chatzipetrou and Moschidis (2016), Farooq et al (2017), Kirlio glu and Çevik (2013), Tye et al (2011), Jafar et al (2010 and Desai (2008) have…”

Section: Characteristicsmentioning

confidence: 99%

Quality cost management in the SMEs of Poland

Biadacz

2020

TQM

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PurposeThe purpose of the study is to examine the research problem that represents an attempt to approximate the importance of quality costing in managing a modern enterprise using the selected enterprises from small and medium-sized enterprises (SMEs) in Poland.Design/methodology/approachThe primary goal of the research is a need to acquire knowledge about the use of quality cost accounts in enterprises operating in Poland. The research has been conducted in the SMEs of production and services. From October 2018 to December 2018, survey-based research was carried out in the selected SMEs of production and service in Poland. The targeted participants of the study are from the medium-sized enterprises, employing 50–250 people.FindingsThe pilot studies conducted in companies indicate that modern enterprises are focused on quality. Many enterprises declare to be continuously improving quality system and quality costing. However, generally, these are large companies that have implemented ISO standards, often part of international corporations. The survey result of the study shows that medium-sized enterprises still make little use of modern cost accounting variants. Based on the study, only 9.75% (39 enterprises) from a representative group of 400 companies from the sectors of manufacturing, services and production as well as service companies apply quality costing. Some of the other enterprises are only taking measures to implement quality cost accounting.Research limitations/implicationsThe research has been conducted in randomly selected SMEs in the form of a questionnaire interview. In order to further analyze the construction of quality cost management (QCM) systems and the use of information from QCM by enterprises, case study method should be used more widely.Practical implicationsThe results of the study provide useful help for companies that are quality-oriented and want to implement quality costing. The survey has been conducted in 400 enterprises, and the survey results of considered SMEs reveal the most important aspects of the application of quality costing.Originality/valueThe questionnaire used, the answers provided and the resulting conclusions fill the identified research gap. In the author's opinion, findings of research are relevant and useful, not only for accounting practice but also for theory. They show that although TQM and quality costing have been very popular in the literature since the 1990s, the degree of application of quality costing in practice (except for large, often international companies) is too low. So, the suitability of QCM in managing a modern enterprise from the SMEs should be promoted.

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Section: Characteristicsmentioning

confidence: 99%

Quality cost management in the SMEs of Poland

Biadacz

2020

TQM

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“…At a more subtle level, Juran (1951) and Feigenbaum (1956) classified the COQ into four main categories that will be followed in this research:  Prevention costs: these are the costs invested in ensuring quality requirements will be met (Ayach et al, 2019). Its activities include cost of implementing and controlling the total quality control system and quality improvement programs (Farooq et al, 2017).…”

Section: Characterizing Coqmentioning

confidence: 99%

“…It is the most basic and most normally used cost-quality analysis model (Ayach et al, 2019). It is widely used in manufacturing because of its straightforward interpretation, and its components can be easily and directly measured (Farooq et al, 2017;Plewa et al, 2016;Silaga et al, 2015).…”

Section: Characterizing Coqmentioning

confidence: 99%

The influence of cost of quality on the performance of food manufacturing companies: an empirical study

Ghunaim

Jaaron

2021

TQM

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PurposeDue to the ever-increasing competitive and complex business environments, food manufacturing companies have to maintain high-quality products while simultaneously minimizing customers' costs. Cost of quality (COQ) plays a crucial role in enhancing companies' efficiency and reducing expenditures that can contribute to companies' competitive performance. This paper investigates the underlying relationship between the level of COQ practices adoption (prevention, appraisal, internal and external failure costs) and organizational performance in Palestinian food manufacturing companies (PFMCs).Design/methodology/approachA quantitative research methodology using a structured questionnaire collected data from 119 PFMCs. Partial least squares structural equation modeling was used to analyze collected data.FindingsResults indicated that COQ adoption has a significant positive effect on the organizational performance of PFMCs. Besides, prevention, external and internal failure costs were all associated with a positive impact on organizational performance of PFMCs, whereas appraisal cost did not affect organizational performance.Originality/valueThis study is considered one of the first studies to investigate COQ practices' effect on organizational performance in food manufacturing companies in a developing country context. Thus, it adds significant value to the literature responding to calls to tackle competitiveness issues in current complex business environments.

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“…While the conventions currently governing the cost of quality include the cost of replacing a part and finding the source of the quality problem (Farooq et al 2017), respondents were not able to estimate the direct financial implications of a counterfeit , Deceptive counterfeit risk in global supply chains, Supply Chain Forum: An International Journal, Accepted.…”

Section: Nonrenewable Energymentioning

confidence: 99%

Deceptive counterfeit risk in global supply chains

Ghadge

Duck

et al. 2021

Supply Chain Forum: An International Journal

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The study investigates deceptive counterfeits in global supply chains. It explores perceived sources of counterfeits, their impact and identifies risk mitigation strategies in Business-to-Business procurement. An online survey is used to collect data from 140 procurement professionals targeted at a national purchasing body and affiliated UK purchasing groups. The study findings show that counterfeit breaches are increasing, especially in low-cost spare parts, sourced from tier-two suppliers based in developing countries. Counterfeits lead to high costs SCs in delays, lost sales, product recalls and even legal action. Network transparency, cost of quality and pre-supply evaluation approaches and supplier relationship management are the most effective mitigation strategies to overcome deceptive counterfeits. The study contributes to academics and practitioners' growing research interest on counterfeit risk in global supply chains.

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Cost of quality: Evaluating cost-quality trade-offs for inspection strategies of manufacturing processes

Cited by 61 publications

References 13 publications

Quality cost management in the SMEs of Poland

Quality cost management in the SMEs of Poland

The influence of cost of quality on the performance of food manufacturing companies: an empirical study

Deceptive counterfeit risk in global supply chains

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