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Behavior patterns of quality cost categories

Behavior patterns of quality cost categories Purpose – The purpose of this paper is to find out the behavior patterns of different quality cost categories to enable us to take the right decisions in allocating resources for reducing quality costs. Design/methodology/approach – Costs of quality, existing in a small‐scale industry in India, in the financial year 2006‐2007, were found out. At the start of the financial year 2007‐2008 a quality cost program was implemented in that organization and more resources were allocated for prevention and appraisal cost activities. Subsequently, the costs of quality related to the financial year 2007‐2008 and 2008‐2009 were found out. Based on the quality cost data of three years, co‐relation co‐efficient between the different quality cost categories were calculated. Findings – The co‐relation co‐efficient between different quality cost categories suggest that by increasing the efforts towards prevention and appraisal activities, costs of non conformance decrease. Furthermore, there exists positive co‐relation within costs of conformance and between costs of non conformance. Orginality/value – In the competitive modern world, small scale organizations have limited resources. They do not have funds to hire consultants. So, the behaviour patterns of quality cost categories help these organizations to allocate precious resources more effectively and result in the reduction of quality costs thereby improving profitability. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The TQM Journal Emerald Publishing

Behavior patterns of quality cost categories

The TQM Journal , Volume 23 (5): 6 – Aug 23, 2011

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1754-2731
DOI
10.1108/17542731111157617
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to find out the behavior patterns of different quality cost categories to enable us to take the right decisions in allocating resources for reducing quality costs. Design/methodology/approach – Costs of quality, existing in a small‐scale industry in India, in the financial year 2006‐2007, were found out. At the start of the financial year 2007‐2008 a quality cost program was implemented in that organization and more resources were allocated for prevention and appraisal cost activities. Subsequently, the costs of quality related to the financial year 2007‐2008 and 2008‐2009 were found out. Based on the quality cost data of three years, co‐relation co‐efficient between the different quality cost categories were calculated. Findings – The co‐relation co‐efficient between different quality cost categories suggest that by increasing the efforts towards prevention and appraisal activities, costs of non conformance decrease. Furthermore, there exists positive co‐relation within costs of conformance and between costs of non conformance. Orginality/value – In the competitive modern world, small scale organizations have limited resources. They do not have funds to hire consultants. So, the behaviour patterns of quality cost categories help these organizations to allocate precious resources more effectively and result in the reduction of quality costs thereby improving profitability.

Journal

The TQM JournalEmerald Publishing

Published: Aug 23, 2011

Keywords: Quality costs; Quality cost system; Small to medium‐sized enterprises; India

References