Cost of quality measurement in food manufacturing companies: the Greek case

Abstract

Purpose The purpose of this paper is to focus on the cost of quality (CoQ) of food manufacturing companies. The study aims at empirically validating the conceptual structure of the core dimensions of CoQ (prevention, appraisal, internal and external failure cost) and determining their level and relationships. Determining the reasons for not measuring the CoQ as well as the barriers-difficulties and benefits of the CoQ measurement is also an aim of the present study. Design/methodology/approach Greek food manufacturing companies were approached through a structured questionnaire and 91 participated in the study. Exploratory and confirmatory factor analysis, descriptive statistics and correlation analysis are applied for data analysis. Findings The structure of the core dimensions of CoQ is empirically validated, while all of them range within medium levels and are inter-related. The reasons for companies not measuring the CoQ as well as the barriers-difficulties of companies measuring the CoQ are not significant. On the contrary, significant benefits are derived from the CoQ measurement. Research limitations/implications The small sample of the food manufacturing companies operating in one country and the subjective business evidence collected are the main limitations of the present study. Practical implications Food companies can be motivated to establish a robust CoQ measurement system, which would reflect the level of the CoQ dimensions. According to the results of the CoQ measurement, a food company can make decisions to increase the prevention and appraisal costs and decrease the internal- and external-failure costs in order to be more competitive in the market. Originality/value The paper provides deeper insights into the level and inter-relations of empirically validated CoQ dimensions. Very few studies on the CoQ in food manufacturing companies have been carried out in Greece and the present study makes the picture of the CoQ status in this sector more clear.

Future research avenues of cost of quality: a systematic literature review

“…Using novel approaches to gather quality cost data (Karg et al, 2011); identifying how a company makes use of the quality cost information (Cheah et al, 2011;Pires et al, 2017); determining how quality cost data can be used (Al-Tmeemy et al, 2012); providing organization-wide CoQ information (Ozkan and Karaibrahimoglu, 2013); studying how to encourage managers to use quality cost information (Novas and Saraiva, 2014); getting detailed service quality and cost data (Johnston and Ozment, 2015); developing suitable approaches and methods to reduce the burden of CoQ data collection (Rabfeld et al, 2015); considering CoQ data collection methods (Zhang et al, 2015); examining the practical implications of the different uses of qualityrelated cost information (Pires et al, 2017), the reasons why managers use the quality-related cost information according to a diagnostic profile or an interactive profile (Pires et al, 2017) and CoQ data collection in several departments (Czajkowski, 2017); generating new knowledge on the implementation of CoQ measurement (Moschidis et al, 2018); collecting subjective CoQ data from more than one company representative as well as objective data from the company files (Psomas et al, 2018); conducting interviews instead of questionnaires for CoQ data collection (Glogovac and Filipovic, 2018) (continued )…”

“…In this era of increased globalization of markets and liberalization of local economies, the interest of researchers and practitioners in the CoQ concept is increasing, as evidenced by the large number of publications in different contexts and disciplines (Uyar and Neyis, 2015;Grbac et al, 2015;Johnston and Ozment, 2015;Sawan et al, 2018;Psomas et al, 2018). Since the introduction of the concept of CoQ in the 1950s, substantial work has been done by numerous researchers and practitioners in a variety of areas such as manufacturing, construction, building and highway engineering (Sharma et al, 2007).…”

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

“…According to Bayram and Ünğan (2020), prevention costs of quality resembles organizational efforts to improve processes before problems occur, and therefore can enhance organizational learning capabilities by turning learning opportunities into actions that foster organizational performance. In fact, the work of Psomas et al (2018) also suggested that organization that decided to invest in prevention costs of quality can be more competitive in the market due to reduced accidents and wasted resources. Moreover, Ayach et al (2019) believed that investments in prevention and appraisal activities lower the total quality cost.…”

“…Business organizations face competitive and complex circumstances because of the rapid growth of technology and the changing socio-economic environment (Psomas et al, 2018).…”

Industry practices on the rework of defective products: survey results

“…The existing models of quality costs, on the category of internal failures, do not describe the effects that defective items have on cost. Additionally, the same models do not identify decisions and actions that companies should do after a defective item is identified, which influences the determination of the related effects and, consequently, the failure cost (Alglawe et al , 2019; Arabian et al , 2013; Campanella, 1999; Chopra and Garg, 2011, 2012; Duarte et al , 2016; Fons, 2012; Holota et al , 2016; Jaju et al , 2009; Johnson, 1995; Juran and Godfrey, 1999; Kiani et al , 2009; Lim et al , 2015; Malik et al , 2016; Omar and Murgan, 2014; Ozcan, 2012; Pires et al , 2013; Plewa et al , 2016; Psomas et al , 2018; Sailaja et al , 2015; Schiffauerova and Thomson, 2006, 2013; Su et al , 2009; Superville and Gupta, 2001).…”