Measuring the cost of quality of business processes

1989 ◽  
Author(s):  
HERBERT APPLETON
2021 ◽  
pp. 23-26
Author(s):  
Serhii TKACHENKO ◽  
Olena POTYSHNIAK ◽  
Yevheniia POLIAKOVA

Strengthening the impact of the production and economic mechanism on increasing the economic efficiency of the production process and the quality of work is possible on the basis of choosing the most effective ways to achieve high end results of the national economic system of the country. One of these ways is the inclusion in the system of controlled parameters of the economic parameters of quality cost management, the use of which guarantees the quality coordination system to reach a given economically justified state. Adjustment of quality costs consists in maintaining the established proportions between the costs of quality assurance (quality) and the mismatch of work quality indicators, which is achieved by controlling the level of defects, maintaining certain conditions, rules and norms corresponding to the optimal mode of work on quality assurance and the optimal value costs. The quality assurance process is based on a classification represented by a range of activities aimed at ensuring the quality of tools, objects of labour, living labour and information data at all stages of the production process. The costing methodology is based on the selection of the costing object and costing units. Representation of work on quality assurance as an object of calculation, and hours of work or total amount of work as calculation units allows at the right time to present in value terms both the quality assurance process as a whole and the cost of quality for the product. The recommended mechanism of the cost management system in general is focused on a wide range of enterprises and associations, and its use allows to obtain the effect of minimizing the cost of quality, as well as improve the quality of work to ensure product quality, ice directly contribute to production efficiency and quality. Increase of economic benefit at the expense of cost control system solutions of the problem in the future is possible if its implementation on the basis of the theory of functional management development, conversion of static model into a dynamic coordination costs.


2018 ◽  
Vol 1 (01) ◽  
Author(s):  
Ade Dyah

The purpose of this study was to examine and analyze empirically the influence of Total Quality Management (TQM) to the cost of quality and product quality, the influence of Total Quality Management (TQM) to the cost of quality and product quality by quality culture as the moderating variable, the influence of the cost of quality and product quality the performance of the company.Data collection methods used in this research is in the form of secondary and primary data. The questionnaire distributed by proportional random sampling to 34 people respondent managers who working in the rattan industry in Cirebon. The method used in this research is the analysis of MRA (Moderated Regression Analysis) with SPSS tools.The results of this research are the Total Quality Management (TQM) affect the cost of quality and product quality, Total Quality Management (TQM) with a quality culture not significant effect on the cost of quality and product quality, cost and quality of the product quality no significant effect on the performance of the company.


2011 ◽  
Vol 697-698 ◽  
pp. 517-520
Author(s):  
Z. K. Li ◽  
F. Wang ◽  
L. Gao ◽  
Y.J. Fan

This paper analyzes the problems in traditional manufacturing and assembly, puts forward the Estimation Indication for Cost of Quality Losing in an optimization assembly which will be based on RFID. Though this assembly is a kind of selective one, the whole production will be according to the law of interchangeability. Take the hydrostatic bearing for example, and reduce the machining accuracy on the permitted assembling accuracy. At this condition, the quality of assembly will be guaranteed, but the cost and time of manufacturing will be decreased.


2014 ◽  
Vol 34 (4) ◽  
pp. 315-322 ◽  
Author(s):  
Mingzhou Liu ◽  
Conghu Liu ◽  
Qinghua Zhu

Purpose – The purpose of this study was to research how the reassembly (remanufacturing assembly) achieves a quality that is not lower than original production with different precision remanufactured parts based on the integration of mechanics, mathematics (measurement uncertainty) and management (optional classification). Remanufactured product quality is the soul of the remanufacturing project. Design/methodology/approach – First, this paper studies the recycled parts features and reassembly features. Then, we build the mathematical sub-model with remanufactured parts and dimensional precision, which is proven that optional classification can effectively improve the reassembly accuracy mathematically. The optimization model of optional classification for reassembly is proposed under the constraint of a dimensional chain, and the solutions are studied based on particle swarm optimization. Finally, this method is applied in a remanufacturing enterprise and achieves good results. Findings – The method can reduce the cost of quality loss and improve the quality of remanufactured products. Originality/value – It provides a new solution and idea for reassembly with different precision remanufactured parts and promotes the healthy development of reverse logistics with a high level of customer satisfaction. This method can maximize the use of different levels of quality remanufactured parts and improve reassembly accuracy by mathematical proofs and examples.


Author(s):  
Fahri Kurşunel ◽  
Salman Ebdülrzazade

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).


2020 ◽  
Vol 18 (3) ◽  
pp. 400
Author(s):  
Iman Supriadi

The tight competition in the industry requires companies to always make improvements in the quality of the products made to maintain a position in the competition. With the introduction of an increasingly contemporary management system, managerial decision makers tend to apply some performance management tools, one of which is Lean's business concept. This concept is characterized by the effort to eliminate waste in production, increase the value of more in one product and give value to the customer that is implemented by constantly (continuously Improvement) either from production or from all business processes in the company. In order to successfully respond to the request, the company's manager also needs an appropriate information base. One of the possible information bases is the cost assignment based on the activity. This type of research is a descriptive quality. This study discusses how the implementation and appropriateness of activity-based cost assignment for lean business concept.


2016 ◽  
Vol 11 (2) ◽  
Author(s):  
Fitriayani Adam ◽  
Hendrik Manossoh ◽  
Sherly Pinatik

Quality being the competitiveness of the most important for the company's products and also because the quality has been the hope and desire of everyone, especially the consumer. Customers are not going to focus on a product / service only in terms of price but in good quality inherent in the product or service. Viewed from the importance of the quality of products, each company needs to spend quality, cost of quality is the cost refers to the cost incurred to prevent or expenses incurred as a result of producing a quality product. Efforts to improve the quality of the product will not run without the cost of quality control to overcome the problems faced by the company, where quality control can help the company determine the feasibility of the quality of products based on control limits have been set. This study aims to see how the cost of quality control and to analyze the efficiency of the implementation cost of quality control conducted by Aksan Bakery in Manado. Analysis of the data used is descriptive analysis with qualitative approach and using methods of presentation quality cost ratio analysis to assess the efficiency cost of quality. Based on analysis of the cost of quality control conducted by the company it appears that the cost of quality control conducted by the company do not meet the quality standards that have been set at 2.5% of sales, for the cost of quality issued by the company is greater than a predetermined quality standards, namely amounting to 13.89% of sales. This may imply that the cost of quality control has not been carried out efficiently. Keywords : Efficiency , Cost of Quality


2003 ◽  

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.


Author(s):  
SUSAN H. XU

This paper considers a single-period inventory model where a commodity may be ordered from one of several suppliers with various yields and qualities. Two variations of this model are investigated. First it is assumed that replenishment quantities (yields) follow variability orderings (defined in Sec. 2) and shown that, if the purchasing, holding, and shortage costs are increasing and convex, and the the cost of quality loss is negligible, then ordering from the supplier with the smallest yield variability minimizes the expected cost of the period. In the second variations it is assumed that the replenishment quantities and qualities from the suppliers follow variability orderings, where the quality of an item is represented by a measurement z. An item sold with measurement z is subject to a quality loss l(z), where l(z) is a convex function taking the minimum at the target measurement. It is shown that if the purchasing, holding, and shortage cost functions are linear and increasing, then selecting the supplier with the smallest yield and quality variabilities minimizes the expected cost of the period.


Transport ◽  
2019 ◽  
Vol 34 (5) ◽  
pp. 517-528
Author(s):  
Sebastjan Škerlič ◽  
Edgar Sokolovskij

The goal of the study is to develop a model that focuses on managing logistics costs at all stages of a product’s life cycle. The model includes several different cost components and provides a wider coverage of individual processes, as logistics costs are present in different areas of a company’s operations. The applicability of the proposed method was tested in a multinational company that manufactures furniture fittings on a randomly selected product. The test results provide a theoretical and practical confirmation of the necessity to manage the logistics costs for an individual product, since other models are focused exclusively on the cost optimisation of individual logistics processes. The model therefore complements the existing knowledge and represents a practical tool for logistics professionals that enables more efficient logistics costs planning at an early stage in the development of a product, which can result in the long-term reduction in the total costs of logistics and improve the quality of business processes.


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