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A methodology for realignment of quality cost elements

A methodology for realignment of quality cost elements Purpose – This paper aims to present an innovative research methodology that enables a company to realign its quality cost elements in order to improve implementation of its quality system. Design/methodology/approach – The methodology combines the following methods: the house of quality costs (HOQC) method, which translates the desired improvement in failure costs (internal and external) into controllable efforts (prevention and appraisal costs) and ranks them by relative importance, the analysis of variance method, which supports selection of vital quality costs, and the enhanced control chart method, used to validate the strong causal linkages in HOQC. Findings – Two case studies are presented to illustrate the application of the developed methodology. In the furniture firm, there are basically two vital sources of defects that could affect the overall cost of quality – raw materials and production process. In the food firm, traditional quality control is not enough to eliminate quality problems from the production processes. Hence, the hazard analysis critical control point is implemented. Practical implications – The methodology applied in this paper proved itself capable of effectively handling realignment of quality cost elements. The methodology emphasizes adopting a systemic approach for selecting the vital controllable efforts in response to vital failure costs, as well as for detecting changes in the quality cost structure. Originality/value – The American Society for Quality provides good coverage of quality cost types, but offers no mechanism for building and maintaining the relevance of these costs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Modelling in Management Emerald Publishing

A methodology for realignment of quality cost elements

Shuki Dror
Journal of Modelling in Management , Volume 5 (2): 16 – Jul 6, 2010
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References (35)

Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1746-5664
DOI
10.1108/17465661011060998
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to present an innovative research methodology that enables a company to realign its quality cost elements in order to improve implementation of its quality system. Design/methodology/approach – The methodology combines the following methods: the house of quality costs (HOQC) method, which translates the desired improvement in failure costs (internal and external) into controllable efforts (prevention and appraisal costs) and ranks them by relative importance, the analysis of variance method, which supports selection of vital quality costs, and the enhanced control chart method, used to validate the strong causal linkages in HOQC. Findings – Two case studies are presented to illustrate the application of the developed methodology. In the furniture firm, there are basically two vital sources of defects that could affect the overall cost of quality – raw materials and production process. In the food firm, traditional quality control is not enough to eliminate quality problems from the production processes. Hence, the hazard analysis critical control point is implemented. Practical implications – The methodology applied in this paper proved itself capable of effectively handling realignment of quality cost elements. The methodology emphasizes adopting a systemic approach for selecting the vital controllable efforts in response to vital failure costs, as well as for detecting changes in the quality cost structure. Originality/value – The American Society for Quality provides good coverage of quality cost types, but offers no mechanism for building and maintaining the relevance of these costs.

Journal

Journal of Modelling in Management – Emerald Publishing

Published: Jul 6, 2010

Keywords: Quality costs; House of quality; Analysis of variance; Control systems

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