Management of quality-related costs. The case of Portuguese companies

Abstract

The traditional viewof quality related costs (QRC) tries tojustify investment in preventionasa way to reduce the costs offailure. Butthisstatic viewmust countera moredynamic vision that fosterscontinuous improvementand assessesthe costs andbenefits of implementingtechniques and methods ofquality management, such ascertification ofISO 9001systems. However, it is unknown whether such companies are also engaged in the management of QRC, arising from activities undertaken, either at the level of monitoring, or coming from failures, and if such organizations verify (or not) the recovery of investments in quality. In this sense, the present article aims to provide insight into the procedures adopted by Portuguese companies in managing QRC, and to assess the extent to which management reports allow the analysis of quality costs and contribute to the related planning and control activities. The results of this study showed that there is hardly any assent to the implementation of formal mechanisms for planning and control of QRC, and to the explicit identification and segregation of those costs in management reports.

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How Slovak small and medium manufacturing enterprises maintain quality costs: an empirical study and proposal for a suitable model

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Perceived voluntary code legitimacy: Towards a theoretical framework and research agenda

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