System dynamics approach to analysing the cost factors effects on cost of quality

Kiani, Behdad; Shirouyehzad, Hadi; Bafti, Fahime Khoshsaligheh; Fouladgar, Hamidreza

doi:10.1108/02656710910975750

Cited by 66 publications

(54 citation statements)

References 15 publications

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“…Roughly half of the articles (44.1 percent or 15 articles) focused on recall precursors or factors that cause firms to have a higher (or lower) probability of experiencing product recalls (see Table 1 and Appendix S1). For example, Kiani, Shirouyehzad, Khoshsaligheh Bafti and Fouladgar (2009) highlight the value of investing in preventive and appraisal systems while others have examined operational issues that lead to product recalls, such as sourcing strategies (Li, Wang & Liu, 2011;Steven, Dong & Corsi, 2014), supplier selection (Das, 2011;Tse & Tan, 2011), buyer-supplier relationships (Chao, Iravani & Savaskan, 2009), ISO 9001 processes (Chiarini, 2015), and traceability issues (Alfaro & R abade, 2009;Epelbaum & Martinez, 2014;Tse & Tan, 2012). Scholars have found, for instance, that when traceability is integrated with operational processes (Wang, Li & O'Brien, 2009) and production planning (Wang, Li, O'Brien & Li, 2010), firms can improve their products' overall quality and thus reduce the probability of experiencing product recalls.…”

Section: Product Recall Precursorsmentioning

confidence: 99%

So Many Recalls, So Little Research: A Review of the Literature and Road map for Future Research

Wowak

Boone

2015

J Supply Chain Manag

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Although the literature on product recalls is informative, our understanding of these events is still in its infancy. To promote and guide future research in this nascent area, we engaged in a two‐step process that included a systematic review and categorization of product recall‐related literature and interviews with executives from along the entire supply chain. By oscillating between findings in the literature and themes that emerged during our interactions with executives, we discovered several research opportunities that have yet to be systematically examined by scholars. We also highlight four underutilized theories in supply chain management research—upper echelons theory, punctuated equilibrium theory, enactment theory, and justice theory—that could help guide future research in this area. For managers, this study reveals insights related to four key aspects of product recalls: (1) recall precursors (factors that may lead to recalls); (2) the recall process; (3) the impact of recalls; and (4) mitigation approaches (mechanisms firms can employ to reduce the impact of recalls). For scholars, our study identifies several emergent research opportunities and theoretical lenses in the same four areas and thus serves as a road map for future product recall research.

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Section: Product Recall Precursorsmentioning

confidence: 99%

So Many Recalls, So Little Research: A Review of the Literature and Road map for Future Research

Wowak

Boone

2015

J Supply Chain Manag

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“…Prickett and Rapley (2001) have discovered that the balance among quality costs could be very essential for comprehensive growth of any organization. Kiani et al (2009) have proved that increasing prevention costs and decreasing EFC could directly improve the level of customer satisfaction. Srivastava (2008) has viewed that the COQ has a direct impact on the overall financial goal of a company.…”

Section: Literature Reviewmentioning

confidence: 99%

Unleashing a decisive approach to manage quality costs through behavioural investigation

Chopra¹,

Singh

2015

Business Process Management Journal

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Purpose -Nowadays companies in the world are selling products by keeping quality as a central value for the customer. Quality-related costs arise from a series of activities performed in order to maintain the quality of product or service. Like other activities of business, quality costs can be programmed, budgeted, measured and analysed to attain the objective of better quality at lower cost. The purpose of this paper is to formulate a decisive methodology to optimize total quality cost (TQC), comprehensively. Design/methodology/approach -The TQC borne by any small-and medium-sized enterprise (SME) is the authentic base, which decides budget and other financial policies for running its ongoing quality programmes. To minimize TQC, one has to make sufficient cut backs in the total failure cost (TFC). Through regression analysis, TFC has been statistically modelled with primary quality costs (like preventive costs (PC) and appraisal costs (AC)). Subsequent graphical analysis has been delineated to elaborate relevant behaviour of different quality costs. At last, potency of suggested methodology has been strategically verified by executing a successful case study in an Indian Auto SME. The requisite optimization has been achieved by using Minitab Statistical Software and its practical validation is checked by conducting a two-sample t-test, exclusively. Findings -It has been found that TFC has a direct positive correlation with TQC and it increases with time. Further, TFC is inversely proportional with PC and AC. PC and AC act as independent costs, while TFC is a dependent or secondary quality cost. If the authors strategically allocate PC and AC in advance by using statistical advanced tools, then internal failure costs and external failure costs will diminish amply. Research limitations/implications -It inspires practitioner to harvest profits by inculcating quality cost optimization through lodged statistical behavioural investigation. Proposed approach is verified after performing an empirical study only on an automobile manufacturing SME. Further research is indeed required to testify the given methodology for more complex process configurations. Practical implications -Data related to quality costs is well available with practitioners but generally lying ignored. The case findings will motivate quality practitioners to use the proposed step by step approach for sustainable reduction in overall quality cost. Originality/value -SMEs find it difficult to lower their TQC due to severe scarcity of resources and funds. Moreover literature provides mainly the theoretical or qualitative cases which remain ineffective to propel SMEs towards the real world savings. But this manuscript will act as a unique road-map to de-code the behaviour of different quality costs quantitatively without ignoring the existing constraints of SMEs, especially in the developing nations.

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“…The causal loop diagram in system dynamics focuses on the structure and behaviour of the systems composed of interacting feedback loops (Kiani et al, 2009). The causal loop diagram is an important tool which helps the modeller to conceptualise the real-world system in terms of feedback loops (Sachan et al, 2005).…”

Section: Causal Loop For Investment Done By Lsps On Hrsmentioning

confidence: 99%

Modelling and evaluation of investment strategies in human resources for logistics improvement

Jhawar

Garg

Khera

2016

IJSPM

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Logistics cost is an important factor that affects the competitiveness of nations as well as firms. High logistics costs and low levels of service are a barrier to trade and foreign direct investment and thus to economic growth. Shortening of production cycles, amplification of competition globally, sharing and outsourcing of production processes, shorter delivery times and plethora of choices for customers have made logistics a potential source of competitive advantage. The success of logistics depends on the quality, qualification, skills and commitment of the employees and to excel in future, firms need to attract, retain and develop individuals with the right skills and, capabilities. The paper evaluates various investment strategies for investment in human resources by an Indian-based logistics firm using system dynamics modelling to study the effect of improvement in human resources on the logistics performance index.

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System dynamics approach to analysing the cost factors effects on cost of quality

Cited by 66 publications

References 15 publications

So Many Recalls, So Little Research: A Review of the Literature and Road map for Future Research

So Many Recalls, So Little Research: A Review of the Literature and Road map for Future Research

Unleashing a decisive approach to manage quality costs through behavioural investigation

Modelling and evaluation of investment strategies in human resources for logistics improvement

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