scholarly journals Cost of quality model in the practice of apple juice processing business unit in Batu City: a comparison

2021 ◽  
Vol 924 (1) ◽  
pp. 012067
Author(s):  
N F Rayesa ◽  
D Y Ali
Keyword(s):  
Apple Juice ◽  
Cost Model ◽  
Production Capacity ◽  
Business Unit ◽  
Activity Based Costing ◽  
Quality Model ◽  
Cost Of Quality ◽  
Business Units ◽  
Quality Costs ◽  
The Cost

Abstract The paper compares the cost of quality models in a different business unit of selected apple juice producers. Data and information were carried out through observation and interviews with key informants and related parties. Further data were analysed using the Activity Based Costing (ABC) approach to get a quality cost model for each business unit. The primary cost analysis shows a similar proportionality between the cost of prevention, appraisal, and cost of failure among three business units. Results illustrated that the higher the production capacity, the higher quality costs that occur or are budgeted for. From the calculation of quality costs, it is known that most of the quality costs come from appraisal costs. The cased business units indicated the high appraisal cost, which does have an impact on the low number of defective or failed products.

scholarly journals The cost of immunising at the general practice level

2009 ◽  
Vol 1 (4) ◽  
pp. 286 ◽  
Author(s):  
Nikki Turner ◽  
Paul Rouse ◽  
Stacey Airey ◽  
Helen Petousis-Harris
Keyword(s):  
General Practice ◽  
Cost Allocation ◽  
Cost Model ◽  
Cost Effective ◽  
Fee For Service ◽  
Activity Based Costing ◽  
Childhood Immunisation ◽  
Practice Nurses ◽  
The Mean ◽  
The Cost

INTRODUCTION: Childhood immunisation is one of the most cost-effective activities in health care. However, New Zealand (NZ) has failed to achieve national coverage targets. NZ general practice is the primary site of service delivery and is funded on a fee-for-service basis for delivery of immunisation events. AIM: To determine the average cost to a general practice of delivering childhood immunisation events and to develop a cost model for the typical practice. METHODS: A purposeful selection of 24 diverse practices provided data via questionnaires and a daily log over a week. Costs were modelled using activity-based costing. RESULTS: The mean time spent on an immunisation activity was 23.8 minutes, with 90.7% of all staff time provided by practice nurses. Only 2% of the total time recorded was spent on childhood immunisation opportunistic activities. Practice nurses spent 15% of their total work time on immunisation activity. The mean estimated cost per vaccination event was $25.90; however, there was considerable variability across practices. A ‘typical practice’ model was developed to better understand costs at different levels of activity. CONCLUSIONS: The current level of immunisation benefit subsidy is considerably lower than the cost of a standard vaccination event, although there is wide variability across practices. The costs of delivery exceeding the subsidy may be one reason why there is an apparently small amount of time spent on extra opportunistic activities and a barrier to increasing efforts to raise immunisation rates. KEYWORDS: Immunisation; vaccination; patient care management; cost analysis; cost allocation

scholarly journals Valuation of firms with multiple business units

2020 ◽  
Author(s):  
Stefan Dierkes ◽  
Ulrich Schäfer
Keyword(s):  
Firm Value ◽  
Large Scale ◽  
Simulation Analysis ◽  
Cash Flows ◽  
Driver Model ◽  
Business Unit ◽  
Growth Strategies ◽  
Business Units ◽  
The Cost ◽  
Constant Growth

Abstract Corporate valuation often relies on the assumption of a constant and homogenous growth rate. However, large firms frequently (re)balance their activities by diverting cash flows from some business units to fund investments in other units. We develop a value driver model of terminal value for a firm with two units. The model relaxes common assumptions and allows for cross-unit differences in the return on invested capital. We consider intra-unit and cross-unit investments and show their implications for firm value and the long-term development of key accounting variables. Our results help characterize business unit strategies that can be reconciled with popular firm strategies such as the constant payout and constant growth strategies. We find that popular valuation methods that assume both constant payout ratios and constant growth rates (e.g., Gordon and Shapiro, Manage Sci 3:102–110, 1956) constitute a restrictive special case of our model and should only be applied to firms with homogenous business units. We use a simulation analysis to compare our results with alternative valuation models and to illustrate the economic relevance of our findings. The simulation shows that an accurate depiction of business unit strategy is particularly useful if firms plan large-scale cross-unit investments into business units with high returns and if the cost of capital is low.

scholarly journals A CALCULATION OF COST OF QUALITY WITH ACTIVITY BASED COSTING METHOD TO MAINTAIN QUALITY BETWEEN PRODUCTION PROCESSES

2019 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Bambang Purwanggono ◽  
Rizalt Valentinus
Keyword(s):  
Production Process ◽  
Diesel Fuel ◽  
Measuring Method ◽  
Activity Based Costing ◽  
Quality Cost ◽  
Cost Of Quality ◽  
Production Processes ◽  
Cost Categories ◽  
The Cost ◽  
A Company

ABSTRACT Quality is an image of a company. PT Berkat Manunggal Jaya is a company that its primary activity is to assemble the generator units. This company wants to improve its quality in its production processes. The Initial stage is to determine the amount of quality cost since it hasn’t been measured yet, especially in the production processes. This is because there are several cost categories that are within the company but the company still has not been able to measure them, which include the cost of diesel fuel for repeated inspection and the amount of diesel fuel that was carried when generators are delivered to the customers. The measuring method of this quality cost is using the Cost of Quality (COQ) model which details of the cost categories are based on Activity Based Costing (ABC) method. This method is suitable because it uses direct costs’ account, for instance, the use of materials as well as indirect costs as corporate overhead costs. The detail work instructions for the inspection of the production process between departments are provided based on existing procedures in the company. This is done to reduce the unacceptable product-in-progress when the production process is in operation. After calculating and put in all the activities into the four categories of Cost of Quality, the total Cost of Quality compared with the prices of sold unit from every generator set type are 1.77% for 680 KVA type open, 1.74% for 1300 KVA first type silent, 1.74% for 1300 KVA second type silent, 2.86% for 680 KVA type silent, 1.28% for 1300 KVA first type open, 1.27% for 1300 KVA second type open, 1.13% for 1740 KVA first type open, 1.13% for 1740 KVA second type open. The recommended solution for the reduction of Cost of Quality is to modify the procedure inspection flow in the company to reduce failure cost, especially in the final inspection costs (repeated test load processes).

How Do We (Actually) Know Our Quality Is Improving?

2018 ◽  
Author(s):  
Justin R. Papp ◽  
William H. Forbes ◽  
Matthew A. R. Yarmuch
Keyword(s):  
Performance Metrics ◽  
Cost Model ◽  
Quality Improvements ◽  
Quality Model ◽  
Quality Performance ◽  
Cost Of Quality ◽  
Business Objectives ◽  
Operational Activities ◽  
The Right ◽  
Operational Excellence

We have all dealt with performance metrics in the pipeline industry. How do we measure operational excellence? Are we prioritizing the right corrective actions? Are our existing metrics fair and driving the right behaviors? Will they recognize success and actually show us and our clients that we are improving? This paper describes how Enbridge Major Projects measures and knows our Quality is improving; how we prioritize, focus, and monitor Quality improvement. Using our roadmap, your organization can transform existing data streams from anecdotal to well established facts that produce actionable results and drive business objectives. To reach this outcome, Enbridge Major Projects quickly matured our Quality Culture by leveraging our strong Safety Culture and habits. On our journey to meaningful overall Quality metrics, Enbridge built a foundation through non-punitive incident reporting using incident resolution tools and a Cost of Quality model. Cost of Quality models can be designed and executed in a variety of ways. This paper will focus on applying a model specifically suited for pipeline construction and operational activities. Key topics to be addressed include: • basic common principles of an overall Cost of Quality model, • various data collection methods to suit the model’s design, and • how a Documented Defects Quality cost model allows Enbridge to identify, prioritize, and monitor Quality improvements focused on preventing recurrence and occurrence of Quality issues. Examples will be provided for common pipeline applications, including valves, pipe, and other commodities and services. This approach has enabled Enbridge Major Projects to prioritize improvement actions and meet business objectives. Applying a Cost of Quality model will enhance your operational excellence and greater adoption would provide the foundation for industry-wide Quality performance metrics that will recognize success and validate that Quality is improving in the pipeline industry.

Total Quality Cost Reduction in Head Stack Assembling

2011 ◽  
Vol 110-116 ◽  
pp. 4028-4035
Author(s):  
Wari Dansakuncharoenkit ◽  
Damrong Thawesaengskulthai
Keyword(s):  
Cost Reduction ◽  
Disk Drive ◽  
Fish Bone ◽  
Quality Level ◽  
Total Quality ◽  
Quality Cost ◽  
Cost Of Quality ◽  
Detection Ability ◽  
Quality Costs ◽  
The Cost

The PAF model, which is one of techniques about the cost of quality (CoQ), has been introduced to the head stack assembly process in the hard disk drive industry. Purpose to measure the total CoQ in the current process and use it as a tool to identify problems related to quality costs in order to find improvement plans. The total CoQ has been calculated in the percentage of the cost of quality per the cost of finished goods. Cost elements that impacted to the total CoQ have been prioritized and analyzed by using the Fish Bone diagram and the FMEA tool to find the potential causes of problems. The improvement plans have been implemented in order to reduce the chance of occurrences and improve detection ability. The result on two head stack models showed that the total CoQ could be reduced from 1.45% to 1.36% or 6.21% of improvement on the model A and reduced from 1.11% to 1.08% or 2.70% of improvement on the model B. The optimum points between the total CoQ and the quality level are 1.32% and 99.32% on the model A and 1.07% and 98.95% on the model B.

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

2021 ◽  
Vol 29 (1) ◽  
pp. 20-26
Author(s):  
Katarína Teplická ◽  
Soňa Hurná
Keyword(s):  
Cost Effectiveness ◽  
Economic Efficiency ◽  
Cost Ratio ◽  
Cost Index ◽  
Cost Of Quality ◽  
Average Value ◽  
Industrial Enterprises ◽  
Long Period ◽  
Quality Costs ◽  
The Cost

AbstractVery 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.

scholarly journals Quality Costs in Health Enterprises and Sample Application

2018 ◽  
Author(s):  
Fahri Kurşunel ◽  
Salman Ebdülrzazade
Keyword(s):  
Services Quality ◽  
Health Sector ◽  
Control Process ◽  
Sustainable Competitive Advantage ◽  
Cost Of Quality ◽  
Quality Costs ◽  
Sample Application ◽  
Effective Cost ◽  
The Cost

Changing the expectations and needs of customers over time has strengthened the quality prospects for the client. The goal of the company's assets is to satisfy the customer, keep the client and protect customer loyalty. At present, it is considered that the qualification in the health sector, in particular, has a strategic priority in the success of the business and that quality management is a sustainable competitive advantage. Medical services are at the forefront of the services that people receive the most. For healthcare companies that perform these services, quality is expressed as a strategic tool used to create activities that will meet the client's needs, both current and future, and reduce costs with an effective cost control process. In this context, healthcare companies need to pay sufficient attention to the quality of their services to customers. Quality service offered to people has a significant cost that businesses have to endure. Healthcare enterprises want to know the cost of the services they want to achieve as a result of their activities. This cost is the result of activities carried out at the enterprise. This study explains the concept of quality and the importance of quality and includes the cost of quality. Then the costs for quality, included in the total cost in the hospital, are processed separately in Baku (Azerbaijan).

scholarly journals Prioritizing the Main Elements of Quality Costs in Design-Build Mass-Housing Projects

2019 ◽  
Vol 5 (5) ◽  
pp. 1136-1146
Author(s):  
Mohammad Balouchi ◽  
Majid Gholhaki ◽  
Ali Niousha
Keyword(s):  
Product Quality ◽  
Construction Projects ◽  
Skilled Workers ◽  
Structured Interviews ◽  
Cost Of Quality ◽  
Housing Projects ◽  
Mass Housing ◽  
Quality Costs ◽  
Service Training ◽  
The Cost

Reducing the cost of quality in mass-housing projects can reduce the overall cost and can also result in increasing profitability or the possibility of getting more projects due to the lower price offered in the tenders. The first step to reduce the cost of quality is to identify different elements, determine their impact on the final product quality and then prioritize them. In this study, questionnaires and structured interviews with experienced construction professionals were employed to identify and prioritize the fundamental elements using the P-A-F (prevention, evaluation, and failure) method, one of the most well-known methods for categorizing quality costs. The results indicate a high impact of preventive activities and the low impact of external failure activities on final product quality. According to the results, the use of experienced specialists and skilled workers is more effective than in-service training of inexperienced forces. Corrective actions of non-conformities and design improvements have a significant impact on final product quality. The new approach to COQ elements ranking, used in this research, can help decision-makers to prioritize the most effective activities in construction projects to increase final quality with an optimum quality cost.

scholarly journals Improving the quality of reproductive health care: How much does it cost?

2003 ◽  
Keyword(s):  
Quality Of Care ◽  
Reproductive Health ◽  
Quality Care ◽  
Cost Of Quality ◽  
Quality Costs ◽  
Multiple Dimensions ◽  
Program Costs ◽  
Access And Quality ◽  
The Cost

Quality care for clients should be the focus of a family planning and reproductive health program, but can programs afford it? There is no simple answer. The multiple dimensions of quality of care make it more difficult to identify and measure affordable improvements in service delivery. Calculating program costs is challenging, and different methods can lead to widely varying estimates. Determining how much quality costs is a challenge, but it is both possible and important for programs’ sustainability. This brief focuses on various aspects of costs and examines information about the cost of improving quality (as opposed to the cost of quality of care in general), then outlines ways to improve quality while containing costs. Ideally, decisions about quality should be the result of a dialogue among policymakers, providers, and clients. Each program has to decide what standard of quality is appropriate to apply considering its situation, its resources, and the needs of the population it is meant to serve. This policy brief uses the framework developed by the U.S. Agency for International Development’s Maximizing Access and Quality initiative.

The Use of Activity-Based Costing, Uncertainty, and Disassembly Action Charts in Demanufacture Cost Assessments

1995 ◽  
Author(s):  
Bert Bras ◽  
Jan Emblemsvåg
Keyword(s):  
Numerical Simulation ◽  
Cost Model ◽  
Simulation Technique ◽  
Design Parameters ◽  
Abc Model ◽  
Activity Based Costing ◽  
Monte Carlo Simulation Technique ◽  
The Cost ◽  
A Company ◽  
Numerical Simulation Technique

Abstract In this paper, the development of an Activity-based Cost (ABC) model is presented for use in design for demanufacture under the presence of uncertainty. Demanufacture is defined as the process opposite to manufacturing involved in recycling materials and product components after a product has been taken back by a company. The crux in developing an ABC model is to identify the activities that will be present in the demanufacturing process of a product, and afterwards assign reliable cost drivers and associated consumption intensities to the activities. Uncertainty distributions are assigned to the numbers used in the calculations, representing the inherent uncertainty in the model. The effect of the uncertainty on the cost and model behavior are found by employing a numerical simulation technique — the Monte Carlo simulation technique. The additional use of disassembly action charts allows the influence of the uncertainty to be traced through the cost model to specific demanufacture process and product design parameters.

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