Risk analysis of estimates for cost of quality in supply chain: a case study

Pattanayak, Amiya Kumar; Prakash, Anand; Mohanty, R.P.

doi:10.1080/09537287.2018.1541488

Cited by 21 publications

(18 citation statements)

References 57 publications

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“…This result also coheres with Modhiya and Desai's (2016) findings, stating that after COQ implementation, customer complaint reduction can be achieved along with scrap and reword numbers drop. Besides, Pattanayak et al (2019) asserted that the prerequisite to improve the company's poor performance is a…”

Section: Discussionmentioning

confidence: 99%

“…Furthermore, authors discovered that COQ adoption has positive outcomes on the company's overall performance. Similarly, Pattanayak et al (2019) asserted that the prerequisite to improve the company's poor performance is a complete and effective system for tracking COQ. The work of Lari and Asllani (2013) provided an evidence for the importance of COQ systems for organizational performance.…”

Section: This Is Whatmentioning

confidence: 99%

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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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Section: Discussionmentioning

confidence: 99%

Section: This Is Whatmentioning

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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“…where: NI -total cost of internal errors for the period, NE -total cost of external errors for the period, NH -total cost of evaluation for the period, NP -total cost of prevention for the period. The second statistical indicator which reflects the development of costs the observed period we refer to as Individual simple cost index related to the quality at manufacturer by formula (2). (INQ) is used to monitor the dynamics of quality costs in two consecutive periods and expressed as follows:…”

Section: Methodsmentioning

confidence: 99%

“…Cost classification by the PAF model is not correct for various industry area for example in supply chain because it creates risks of availability of partial information. For the supply chain is used mostly Monte Carlo simulation method as a preferable [2]. Muhammad R. (2019) et al have created model that it describes the dynamics of the quality costs and economic benefits of quality improvement.…”

Section: Literature Reviewmentioning

confidence: 99%

New Approach of Costs of Quality According their Trend of During Long Period in Industrial Enterprises in SMEs

Teplická

Hurná

2020

Management Systems in Production Engineering

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Very important in SMEs is to monitor cost of quality and economic indicators for valuation of cost effectiveness. The main goal of this article is to create classification on cost quality categories in SMEs and to analyze economic quality indicators and their trend during long period. In this article authors use economical and statistical indicators for costs of quality. We use common model PAF, that include prevention costs, evaluation costs, internal failure costs, external failure costs. Total costs, individual simple cost index, cost ratio and cost structure were used. We analyzed data from 50 small enterprises with 10-40 employees with their yearly turnover max 3 mil €. The research sample of enterprises was focused on industrial areas of business such as engineering, metallurgy, automotive industry. We analyzed the quality costs in SMEs by the average value of quality cost in all surveyed enterprises. Results of this research brought labeling of cost of quality in SMEs by model the PAF for 10 categories for various enterprises, what is very important for comparing of results of QMS in SMEs. Based on the reference indicators of the total costs of quality in SMEs we can conclude their drop. Reducing the costs of quality was reflected in particular in reducing the costs of internal and external errors. In assessing the economic efficiency in SMEs plays an important role the overall cost that were increasing in reporting period. Very important result is that the cost of quality did not influenced overall cost. This fact is positive for competitiveness in SMEs because it shows a quality of production and product. Reducing of cost of quality brought improving of product quality; reduced customer’s complaints brought financial savings. The economic efficiency indicator shows a value above e > 1. It means that, despite rising cost enterprises generate revenues that are significantly higher than the input factors of production. Cost effectiveness helps to improve TQM performance.

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“…This game had already been played many times by not only students but also executives of firms who were a part of such an SC and it was found that the result was still the same. This type of results indicated that the total system's risk & cost increase five to ten times of normal or optimal costs (Pattanayak et al, 2019;Sterman, 1989Sterman, , 1995. The beer distribution game was used by Senge (2014) and Senge and Sterman (1992) as a prime example and observed managerial behavior that indicated the occurrence of BWE due to a lack of 'system thinking' by management.…”

Section: Introductionmentioning

confidence: 94%

The bullwhip effect: causes, intensity, and mitigation

Rahman

Talapatra

2020

Production & Manufacturing Research

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This research explores the causes and intensity of demand fluctuation and supply shortage of a supply chain (SC) occurred specially at the festival times. Management offers sales incentives & product discounts at festival times that sometimes create a complex situation to supply the demands properly. This complexity restricts SC performance and market possession. Hence, this research aimed to explore the responsible causes behind this complexity & bullwhip occurrence and claimed sales force incentives, number of echelons, price variation, quantity discount, & machine breakdown as the most responsible causes. Intensity of bullwhip effect (BWE) was measured by Fuzzy Inference System (FIS) of MATLAB TM to visualize their severity on SC performance. Few strategies have been proposed to minimize thier severity on SC excellence. Finally, this article proposed some managerial applications and guidelines to release the management from the frequently arising problems of distorted demands that will result in proper production & inventory management.

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Risk analysis of estimates for cost of quality in supply chain: a case study

Cited by 21 publications

References 57 publications

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

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

New Approach of Costs of Quality According their Trend of During Long Period in Industrial Enterprises in SMEs

The bullwhip effect: causes, intensity, and mitigation

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