Hybrid fuzzy MCDM model for effective utilisation of quality cost analysis in manufacturing firms

Sailaja, A.; Basak, P.C.; Viswanadhan, K.G.

doi:10.1504/ijpqm.2018.091793

Cited by 4 publications

(8 citation statements)

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“…This confirmed that the prevention and appraisal activities yielded results, i.e., were effective. This leads to the conclusions of the research study [25], [31] and [39].…”

Section: Interpretation Of the Results Of The Data Analysis For The S...supporting

confidence: 59%

Visualization of the Process of Tracking Quality Using Quality Costs: An Empirical Study

Velkoska¹,

Tomov²

2022

TEM Journal

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The primary objective of this paper is to find out whether we can use the quality cost model as a tool for visualizing the quality targets in the quality management using the quality costs. The analysis showed that a graphic interpretation of the quality costs model in the companies makes the quality targets “more visible” and “more representative”. The visualization of the quality costs model focuses the efforts of management to use the graphic interpretation of the quality costs for the purposes of visibility, monitoring, comparison with the quality targets at the company level, and beyond during negotiations.

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“…This confirmed that the prevention and appraisal activities yielded results, i.e., were effective. This leads to the conclusions of the research study [25], [31] and [39].…”

Section: Interpretation Of the Results Of The Data Analysis For The S...supporting

confidence: 59%

Visualization of the Process of Tracking Quality Using Quality Costs: An Empirical Study

Velkoska¹,

Tomov²

2022

TEM Journal

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“…Practically, the easiest way to detect quality problems is to know the type and frequency of internal failures that occur in each primary activity and then convert them into monetary value (Khaled Omar and Murgan, 2014; Psomas et al. , 2018; Sailaja et al. , 2014).…”

Section: Discussionmentioning

confidence: 99%

“…However, when the meaning of poor quality is translated into the form of a tolerance range of quality values that is still acceptable, these quality management activities cannot prevent the closeness of the absolute quality value of a product to the specified tolerance limit (Ahmed Al-Dujaili, 2013;Jalali et al, 2019). Practically, the easiest way to detect quality problems is to know the type and frequency of internal failures that occur in each primary activity and then convert them into monetary value (Khaled Omar and Murgan, 2014;Psomas et al, 2018;Sailaja et al, 2014). The next step can be prevention, appraisal, or a combination of both.…”

Section: Quality Cost Chainmentioning

confidence: 99%

“…If undetected and persist in the long term, quality problems can erode the company's performance and reputation. Quality becomes a valuable source for growing sales, earnings and business image when handled quickly, properly and consistently (Blocher et al, 2019;Heizer et al, 2017;Li, 2018;Sailaja et al, 2014;Wood, 2013). Companies that have not been quantifying quality costs might consider this activity as a step in their efforts to enhance the overall quality of their products and services (Pekanov Starcevic et al, 2015).…”

mentioning

confidence: 99%

“…Quality cost is a strategic and systematic issue for a business. It requires a practical method to manage efficiently and effectively (Ahmed Al-Dujaili, 2013;Biadacz, 2021;Chatzipetrou and Moschidis, 2016;Chopra and Garg, 2012;Janatyan and Shahin, 2020;Kaplan, 1983;Sailaja et al, 2014;Sedevich-Fons, 2018); without analytical records of quality expenditures, it would be impossible to establish a reliable estimation or assessment of a company's overall quality costs (Chatzipetrou and Moschidis, 2016;Chopra and Garg, 2012). Based on this, the PAF quality cost model was chosen as the starting point for this study.…”

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confidence: 99%

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A conceptual framework of quality cost chain in strategic cost management

Tambunan

2022

TQM

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PurposeThis study aims to discover a practical and effective way to apply the quality cost concept in Strategic Cost Management (SCM) framework. The interaction of preventive, appraisal and failure (PAF) activities in a company's internal value chain will be the starting point of SCM implementation.Design/methodology/approachThis study begins by establishing value chain and quality costs as the scope of conceptual analysis. Discussions on the interrelationships between activities, quality and costs were gathered to clarify conceptual and practical gaps in the scope of the study. The PAF quality cost model is applied to find viable, practical solutions. The costs of activities will serve as performance indicators.FindingsThe PAF quality cost model depicts opportunities to lower costs and increase profit in a business simultaneously; current poor quality costs are the benchmark. Identifying PAF activities and costs in the business value chain and linking it with others is crucial in evaluating SCM applications. These linkages will generate a Quality Cost Chain (QCC). The leading indicator of improvement is a higher ratio between new possible failure costs (FC) and the combination of prevention and appraisal costs (PAC) than the current value, followed by a lower total quality cost (TQC). The subsequent attention is a lower ratio between the appraisal cost (AC) and prevention cost (PC). Mathematically, for assessing the operability of new quality-related activities, ΔPACnew < ΔFCnew, TQCnew < TQCcurrent, (FC/PC)new>(FC/PC)current and (AC/PC)new<(AC/PC)current are proposed as feasible conditional-quantitative improvement criteria.Research limitations/implicationsThis study only discusses the relationship between quality costs and activities related to quality management in the PAF quality cost model, not cost behavior. This limitation opens up opportunities for future research that intends to link QCC with cost behavior in the context of managerial accounting and Strategic Cost Management. The use of QCC in certain industrial areas is the next research opportunity. The variety of PAF activities this study addresses originates from a wide range of industrial sectors; QCC research by sector may produce unique industrial quality cost phenomena.Practical implicationsQCC will make it easier for managers to evaluate how strategically their departments or activities contribute to quality costs at the departmental or organizational level, as well as to effectively and efficiently improve quality cost performance.Originality/valueThe quality-related activity and quality cost issues are still rarely treated as subjects of research studies in the field of Strategic Cost Management. Even so, the discussion tends to be very broad, complex and difficult to apply. This study combines a simple diagrammatic and mathematical approach to simplify the discussion and, at the same time, manage the value of strategic quality management.

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Cost of quality system in passenger car plant: a methodology of implementation

Rahardjo

Farizal

Gabriel

2020

IOP Conf. Ser.: Mater. Sci. Eng.

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The purpose of this research is to provide methodological adjustments or procedures for installation steps and the implementation of a quality cost system, including adjusting the quality cost calculation model for the automotive manufacturing industry, especially passenger car factories. A literature review approach is used and pilot studies are chosen for empirical aspects of research to enrich the mix of qualitative and quantitative data. Although the literature review shows that many experts write similar research, adjusting the quality cost model is still recommended. The results of the pilot study explain that the implementation of quality costs at an early stage is considered sufficient until reporting. Further research is advised to practice tracking quality costs. Research starts from preparation to reporting on quality costs. The scope of research is limited to quality costs in the operational area (production). The methodology for implementing a quality cost system can guide organizations to get an internal view of quality costs. This research confirms that organizations do need to modify the available quality cost models according to the organization’s goals, needs, and environment. Thus, the simple models offered in this research are both valuable and contribute to quality economic literature.

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Hybrid fuzzy MCDM model for effective utilisation of quality cost analysis in manufacturing firms

Cited by 4 publications

References 0 publications

Visualization of the Process of Tracking Quality Using Quality Costs: An Empirical Study

Visualization of the Process of Tracking Quality Using Quality Costs: An Empirical Study

A conceptual framework of quality cost chain in strategic cost management

Cost of quality system in passenger car plant: a methodology of implementation

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