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An exploratory study on quality costs in Turkish manufacturing companies

An exploratory study on quality costs in Turkish manufacturing companies Purpose – The purpose of this study is to investigate the extent to which Turkish manufacturing companies implement a cost of quality (COQ) system, to evaluate how company performance has changed after COQ system implementation, and to identify the objectives behind COQ measuring and reporting. Design/methodology/approach – The methodology of the study was a postal questionnaire survey. The survey was conducted with the top 500 industrial enterprises in Turkey specified by the Istanbul Chamber of Industry (ICI) for the year 2005. These firms are selected and ranked by ICI according to production‐based sales. Findings – The findings indicated that almost half (49.5 percent) of responding firms currently implement a COQ system. After COQ system implementation, the following remarkable changes were observed in business operations of the responding companies: customer complaints decreased; rework and scrap decreased; warranty expenditures decreased; failure costs decreased; and sales volume increased. The most important three objectives behind COQ measuring and reporting are: overall quality improvement; setting cost reduction targets and measuring progress; and improving control of quality activities. Research limitations/implications – The sample is restricted to the top 500 industrial enterprises in Turkey. As the data in this study were collected from manufacturing companies, the findings should not be generalized to other sectors. Originality/value – The paper provides the general practices and perceptions of the largest Turkish manufacturing companies on quality costs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Quality & Reliability Management Emerald Publishing

An exploratory study on quality costs in Turkish manufacturing companies

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
0265-671X
DOI
10.1108/02656710810881908
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this study is to investigate the extent to which Turkish manufacturing companies implement a cost of quality (COQ) system, to evaluate how company performance has changed after COQ system implementation, and to identify the objectives behind COQ measuring and reporting. Design/methodology/approach – The methodology of the study was a postal questionnaire survey. The survey was conducted with the top 500 industrial enterprises in Turkey specified by the Istanbul Chamber of Industry (ICI) for the year 2005. These firms are selected and ranked by ICI according to production‐based sales. Findings – The findings indicated that almost half (49.5 percent) of responding firms currently implement a COQ system. After COQ system implementation, the following remarkable changes were observed in business operations of the responding companies: customer complaints decreased; rework and scrap decreased; warranty expenditures decreased; failure costs decreased; and sales volume increased. The most important three objectives behind COQ measuring and reporting are: overall quality improvement; setting cost reduction targets and measuring progress; and improving control of quality activities. Research limitations/implications – The sample is restricted to the top 500 industrial enterprises in Turkey. As the data in this study were collected from manufacturing companies, the findings should not be generalized to other sectors. Originality/value – The paper provides the general practices and perceptions of the largest Turkish manufacturing companies on quality costs.

Journal

International Journal of Quality & Reliability ManagementEmerald Publishing

Published: Jun 27, 2008

Keywords: Accounting; Quality costs; Surveys; Manufacturing industries; Turkey

References