Impacts of the Cost of Quality Components on Business Execution and the Strategies to Minimize the Cost of Poor Quality

  • Shobhendu Prabhakar
Keywords: The cost of quality, The cost of good quality, The cost of conformance, The cost of poor quality, The cost of bad quality, The cost of non-conformance, Prevention costs, Appraisal costs, The cost of internal failures, The cost of external failures, Continuous Improvement, Quality Management System (QMS), Quality Assurance (QA), Quality Control (QC), Risk Management, Change Management

Abstract

This research paper discusses and analyzes the components of the cost of quality (namely the cost of good quality and the cost of poor quality), their impacts on business execution and the company’s bottom line (i.e. profits) and suggests strategies to minimize the cost of poor quality.

References

[1] Cost of Quality. (2008). Available at: https://totalqualitymanagement.wordpress.com/2008/09/12/cost-of-quality/.
[2] Arne Buthmann. (2014). Cost of quality: Not only failure costs. Available at: https://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/.
[3] Cost of Quality. (2019). Quality-one International. Available at: https://quality-one.com/coq/.
[4] Cost of Quality. (2018). White paper – Altran. Available at:
https://www.altran.com/as-content/uploads/sites/4/2018/02/altran_cost-of-quality-whitepaper.pdf .
[5] Charles Fine. (1983, 84). Quality control and learning in productive systems. Sloan School of Management. Available at: https://dspace.mit.edu/bitstream/handle/1721.1/2062/SWP-1494-15478413.pdf
[6] Philips Crosby. (1995). Quality is still free. Interview with Industry Week. Available at: https://www.industryweek.com/quality/philip-crosby-quality-still-free
[7] Cost of Quality. (2019). American society for quality (ASQ). Available at: https://asq.org/quality-resources/cost-of-quality
[8] Vishal Waje & Vishal Patil. (2009). Cost of poor quality in construction. IOSR Journal of Mechanical and Civil Engineering. Available at:
http://www.iosrjournals.org/iosr-jmce/papers/sicete(civil)-volume3/28.pdf.
[9] Shobhendu Prabhakar. (2018). Benchmarking quality management system (QMS) audit process on oil and gas projects. International Journal of Engineering and Management Research, 8(2), 103-109.
[10] 9 key strategies to minimize the cost of poor quality. (2019). Available at: https://www.metricstream.com/insights/costofPoorQuality_home.htm
[11] Benefits of QMS. (2019). Available at: https://fqmltd.com/services/management-systems/benefits-of-qms-2/
[12] The importance of training and development in the workplace. (2019). Available at: https://2020projectmanagement.com/index.cfm?topNav=resources&subNav=project-management-training-and-qualifications&subsubNav=the-importance-of-training-and-development-in-the-workplace
[13] Chris Pursaba. (2015). The top 7 benefits of document management systems. Available at: http://www.whymeridian.com/blog/the-top-7-Benefits-of-Document-Management-Systems
[14] 7 reasons why customer feedback is important to your business. (2016). Available at: https://blog.startquestion.com/7-reasons-why-customer-feedback-is-important-to-your-business-28e99c00eba7
[15] 5 tangible benefits of an effective risk management program. (2011). Available at: https://www.beckersasc.com/asc-accreditation-and-patient-safety/5-tangible-benefits-of-an-effective-risk-management-program.html
[16] Benefits of change management. (2019). Available at: https://www.change-management-coach.com/benefits-of-change-management.html
[17] Nawras Skhmot. (2017). 5 benefits of continuous improvement. Available at: https://theleanway.net/5-Benefits-of-Continuous-Improvement
[18] Trevino, S. A. & Anantatmula, V. S. (2008). Capitalizing from past projects: the value of lessons learned. Paper presented at PMI® Research Conference: Defining the Future of Project Management, Warsaw, Poland. Newtown Square, PA: Project Management Institute. Available at:
https://www.pmi.org/learning/library/business-benefits-value-lessons-learned-7116
[19] Parnell, J. A., Von Bergen, C. W., & Soper, B. (2005). Profiting from past triumphs and failures: Harnessing history for future success. SAM Advanced Management Journal, 70(2), 36–59.
[20] Aiyer, J., Rajkumar, T. M., & Haveleka, D. (2005). A staged framework for the recovery and rehabilitation of troubles is development projects. Project Management Journal, 36(4), 32-43.
[21] Chan, D. W. M., & Kumaraswamy, M. M. (2002). Compressing construction durations: Lessons learned from Hong Kong building projects. International Journal of Project Management, 20(2002), 23–25.
[22] Seth Lessack. (2016). The top 3 benefits of preventive maintenance programs. Available at: https://www.smsassist.com/blog/the-top-3-benefits-of-preventative-maintenance-programs.
Published
2019-02-28
How to Cite
Shobhendu Prabhakar. (2019). Impacts of the Cost of Quality Components on Business Execution and the Strategies to Minimize the Cost of Poor Quality. International Journal of Engineering and Management Research, 9(1), 165-170. Retrieved from http://www.ijemr.net/ojs/index.php/ojs/article/view/158