The role of quality cost measurement in improving product quality

2021 ◽  
Vol 11 (1) ◽  
pp. 248-265
Author(s):  
Manal Soror ◽  
Noor Hazem

The research aims to demonstrate the knowledge pillars of quality costs and the role of measuring the elements of quality costs. This is excluding the elements of failure costs and identifying and improving the level of product quality. Any economic unit seeking to compete in the local and global markets must achieve better product specifications, i.e. higher quality. This cannot be done, but through the use of many techniques, methods and special skills. Quality costs act as a measure or indicator of the performance of the economic unit and the extent of improvement in it. This also contributes to the process of evaluating its strategic performance, for example, to what extent does the increase in spending on research and development costs contribute to reducing other costs? Thus, the economic unit should direct its attention towards the costs of preventing the activities that host value in a way that helps reduce the costs of evaluation and failure of both types (non-value-adding activities). Therefore, if the economic unit is able to produce high-quality products, this enables it to adopt a price policy in the markets and to enable it to achieve a competitive advantage , The most prominent results of the research are that the classification of quality costs is one of the main tasks for determining, calculating and analyzing quality costs. The economic unit that has decided to manage quality costs should select the appropriate quality cost model that includes the categories and elements of quality costs. The most important recommendations are to increase spending on activities, prevention (value-adding activities) in order to reduce evaluation costs and failure in quality and focus on the reduction in evaluation costs and failure of both types should be greater than the increase in the costs of the assessment.

2020 ◽  
Vol 15 (3) ◽  
pp. 324
Author(s):  
Herman Pabusa ◽  
Stanly Alexander ◽  
Djeini Maradesa

Quality costs are costs incurred by the company in order to improve product quality which refers to all costs incurred to prevent the occurrence of defective goods or costs that must be incurred due to defective goods. Quality costs can be divided into two groups, namely the first quality costs associated with control activities consisting of prevention costs and valuation costs and the second is costs associated with failure activities consisting of internal failure costs and external failure costs. This study aims to determine the measurement and reporting of quality costs as a quality cost control tool on the CV. Indo Utama Black Cup Manado. The research method used in this thesis research is a descriptive method in which the purpose of each data collected is analyzed then drawn a conclusion and the type of research used is descriptive qualitative. The results obtained that the measurement and reporting of quality costs on the CV. Indo Utama Manado Black Cup has not yet taken cost measurements and has not presented separate quality cost reporting, so it cannot be used as a quality cost control tool.


2013 ◽  
Vol 330 ◽  
pp. 737-742 ◽  
Author(s):  
Lutfi Aniza ◽  
Michael H. Wang ◽  
Fritz Rieger

Determining the quality cost is one of the best ways that can assist industrial or business organizations to know clearly the investment and return of their quality improvement efforts. The information provided by accurate quality cost calculation is also a significant tool that can assist our assessment of the effectiveness of quality management system, as well as identification of quality issues within the organization and creation of opportunities for improvement. The purpose of this paper is to show the development of a quality cost model that includes all possible quality cost components such as Prevention, Appraisal and Failure (P.A. F) costs. Based on reviewing and analyzing various quality cost models, a generic quality cost model is developed. The proposed model can be used as a tool to calculate various quality costs. In addition, it can be used to determine the most serious failure cost. A case study has used to validate the proposed model. In this case, the implementation showed that the model is able to identify and quantify the hidden cost related to the quality in electronic assembly plant. Also, it is used to identify the potential improvement opportunities within the plant.


2019 ◽  
Vol 30 (3) ◽  
pp. 278-293
Author(s):  
Maja Glogovac ◽  
Jovan Filipovic

In this paper, the PAF (preventive-appraisal-failure) quality costs model is used on the process level, in order to identify those processes which are critical as a top-priority for improvement. The elements of quality costs are considered in relation to the outputs of the processes, where the principle that one process affects the quality of another process by its outputs is taken into account. That is why the failure costs of the affected processes should also be assigned to the quality costs of the observed process. Using the factors proposed in the Process cost model, costs are identified and calculated for each process for two moments: the current (before improvements) and desired (after improvements). Improvements are implemented on the basis of the causes of nonconformity analysis and according to the PAF model assumption that preventive and appraisal activities reduce failure costs and the total costs of quality. The difference between the total costs of quality in two observed moments is seen as the greatest possible quality cost reduction for the observed process. This value is used as a criterion for ranking the processes according to their priority for improvements, taking into account the assumption of the PAF model that greater costs mean lower quality and hence a higher priority for improvement.


2016 ◽  
Vol 7 (2) ◽  
pp. 1-24
Author(s):  
Neto Jose Alves da Silva ◽  
◽  
Giacaglia Giorgio Eugenio Oscare ◽  

2018 ◽  
Vol 9 (2) ◽  
pp. 234-257
Author(s):  
Anisa Putri

The aim to be achieved in this study is to analyze the quality and productivity costs of case studies at the Islamic University of 45 Bekasi. The research method used in this study is a qualitative descriptive method. The location of the study was conducted at the Islamic University of 45 Bekasi. The data used is secondary data from the financial statements of Islamic University of 45 Bekasi in the academic year 2013/2014. Methods of data collection using interviews and observation. The highest quality cost discussion results are prevention costs at the cost of seminars and training for lecturers as much as Rp. 450,561,400, -. The lowest quality cost is the assessment fee at the cost of lecturer accreditation of Rp. 1,925,000, -. The percentage of quality costs is 2.1% smaller than the fairness of the total quality costs of 2.5%. The realization of the output of new student admissions was obtained in the 2013/2014 school year as many as 1,339 people. Total students 6,364 people. The study period is more than 4 years and has not graduated as many as 992 people. Failure costs as much as 16% of total students. Realization of financial output was achieved in the amount of Rp. 39,384,232,556, - ​​Input Rp. 35,606,307,800, - used to obtain output. Company productivity is efficient because output is greater than input. Company productivity is effective because the company achieves financial goals by obtaining a surplus of Rp. 3,777,924,756, - The conclusion that can be drawn is that quality costs are able to obtain output in the form of income exceeding its input value so that productivity is efficient and effective and surplus.


Author(s):  
D.B. Wright

The physical features, climate and soils of the West Coast are described. Expansion since 1964 of dairy production, sheep and beef cattle numbers, and areas of improved grassland are highlighted, as is the role of the Crown in land development and settlement. While isolation and distance, development costs, river problems, and farmer attitude and knowledge are considered limitations, great scope exists for increased production by the adoption, of more intensive techniques, including horticulture on the best coastal soils, and by development of waste land.


2017 ◽  
Vol 4 (1) ◽  
pp. 189-215
Author(s):  
Yoiz Shofwa Shafrani

Perkembangan dunia perbankan syariah tidak lepas dari peran para nasabah yang memberikan kepercayaan terhadap pihak perbankan untuk penyimpanan asset keuangannya. Faktanya banyak kelompok nasabah yang memutuskan untuk menjadi nasabah di perbankan syariah karena faktor religiusitasnya. Faktor lain yang dapat ikut mempengaruhi keputusan nasabah adalah kualitas produk. Di mana kualitas produk merupakan karakteristik yang melekat dari suatu produk. Kemungkinan yang terjadi bahwa kebanyakan nasabah pada perbankan syariah juga masih merupakan nasabah perbankan konvensional.Tujuan yang ingin dicapai dalam penelitian ini adalah untuk mengetahui pengaruh kualitas produk dan tingkat religiusitas nasabah terhadap keputusan nasabah untuk menyimpan dananya atau tidak di BSM Cabang Purwokerto. Alat analisis yang digunakan adalah analisis regresi linier berganda, dengan jumlah sampel 100 nasabah. Diperoleh hasil Y = 5,046 + 0,101X1 + 0,218X2. Berdasarkan uji F yang sudah dilakukan maka dapat diketahui bahwa variabel kualitas produk dan religiusitas secara bersama – sama berpengaruh terhadap keputusan nasabah untuk menyimpan dananya di BSM Cabang Purwokerto. Berdasarkan uji t yang sudah dilakukan dapat diketahui bahwa secara partial baik variabel kualitas produk maupun variabel religiusitas berpengaruh terhadap keputusan nasabah untuk menyimpan dananya di BSM Cabang Purwokerto. The progress of the Islamic bank cannot be separated from the role of its customers who give trust to the bank to deposit their financial assets. It is a fact many groups of customers decide to be the customers of the Islamic bank because of their religiosity. The other influences factor of a customer’s decision is the quality of the product. The aim of this research was to determine the effect of product quality and level of customers’ religiosity towards customers’ decision whether to keep their funds in Syariah Mandiri Bank, Branch of Purwokerto, or not. The analytical tool used was multiple linear regression analysis, with a sample of 100 customers. The results indicate Y = 5,046 + 0,101X1 + 0,218X2. Based on F, it can be seen that both variables of product quality and religiosity simultanously affect the customers’ decision to keep theirfunds in BSM Branch of Purwokerto. Based on t test, it can be seen that independently, either variable of product quality or variables of religiosityinfluences the customers’ decision to keep their funds in BSM Branch of Purwokerto.


2019 ◽  
Vol 58 (2) ◽  
pp. 376-392 ◽  
Author(s):  
Hassan Ahmed Shah ◽  
Muhammad Yasir ◽  
Abdul Majid ◽  
Muhammad Yasir ◽  
Asad Javed

Purpose The purpose of this paper is to explore the ways in which strategic orientation (SO) and strategic renewal (SR) could create the possibility for improving strategic performance (SP). The indirect effect of SO was also tested in this study. Furthermore, by using the moderated mediation model, the authors also investigated the moderating role of organizational ambidexterity (OA). Design/methodology/approach The results of this cross-sectional study are based on a survey conducted on 1,430 owner/managers of SMEs. To analyze the relationship among variables, this study used descriptive, correlation and hierarchical multiple regression approach. Findings Results revealed that SO positively affects SR and SP in SMEs. Furthermore, the mediating role of SR between the relationships of SO and SP was also confirmed. Moreover, OA strengthens the connection between SO, SR and SP. Practical implications The current study provides new insights for strategic planning and management by focusing on SO along with its different dimensions. Therefore, it provides new guidelines and a roadmap that would be helpful in achieving the objectives of SP. Originality/value The study makes significant contributions to the extant literature by adding new knowledge about the positive impact of SO on SP. Moreover, with the analysis of mediating role of SR in this relationship, the study has made significant addition to the existing literature on SP. Furthermore, moderated mediation model adds value to the existing body of knowledge.


1989 ◽  
Vol 27 (1-2) ◽  
pp. 69-89 ◽  
Author(s):  
Kyle Bagwell ◽  
Robert W. Staiger

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