A Review of Research on Cost of Quality Models (P-A-F Models) and Best Practices
1.0 Title
A Review of Research on Cost of Quality Models (P-A-F Models) and Best Practices
2.0 Introduction
In every organization, measuring and reporting the cost of quality (CoQ) is an important issue they must consider. Quality is a critical factor to defeat competitor and to retain customer and to meet the customer’s need. CoQ is a sum of conformance cost (cost for prevention of poor quality) and nonconformance cost (cost of poor quality caused by product and services failure). CoQ analysis link and relates improvement actions with associated customer expectations and this is seen as the coupling of reduced costs and increased benefits. Nowadays, many organizations seeking the best practiced of CoQ based on the existing CoQ approach. Hence, the cost of doing a quality job, conducting quality improvements and achieving goals must be carefully managed, so that the long-term effect of quality effect of quality on the organization is a desirable one. These costs must be a true measure of the quality effort, as well as the best determined from an analysis of the costs of quality. The analysis as such provides a method of assessing the effectiveness of the management of quality and it is a means of determining problem areas, opportunities, savings and action priorities. There are various models and one of it is the PAF (Prevention, Appraisal and Failure) model. Overall, this model basically split the quality related activities cost into three namely prevention cost (cost associated with the design, implementation and maintenance of the TQM system), appraisal costs (costs associated with the suppliers’ and customers’ evaluation of purchased materials, processes, products and services to ensure they conform to specifications) as well as failure costs (costs that occur when the results of work fail to reach designed quality standards).
3.0 Model Description (PAF Model)
Feigenbaurn (1974) proposed a model to analyse quality cost that is almost
A Review of Research on Cost of Quality Models (P-A-F Models) and Best Practices
2.0 Introduction
In every organization, measuring and reporting the cost of quality (CoQ) is an important issue they must consider. Quality is a critical factor to defeat competitor and to retain customer and to meet the customer’s need. CoQ is a sum of conformance cost (cost for prevention of poor quality) and nonconformance cost (cost of poor quality caused by product and services failure). CoQ analysis link and relates improvement actions with associated customer expectations and this is seen as the coupling of reduced costs and increased benefits. Nowadays, many organizations seeking the best practiced of CoQ based on the existing CoQ approach. Hence, the cost of doing a quality job, conducting quality improvements and achieving goals must be carefully managed, so that the long-term effect of quality effect of quality on the organization is a desirable one. These costs must be a true measure of the quality effort, as well as the best determined from an analysis of the costs of quality. The analysis as such provides a method of assessing the effectiveness of the management of quality and it is a means of determining problem areas, opportunities, savings and action priorities. There are various models and one of it is the PAF (Prevention, Appraisal and Failure) model. Overall, this model basically split the quality related activities cost into three namely prevention cost (cost associated with the design, implementation and maintenance of the TQM system), appraisal costs (costs associated with the suppliers’ and customers’ evaluation of purchased materials, processes, products and services to ensure they conform to specifications) as well as failure costs (costs that occur when the results of work fail to reach designed quality standards).
3.0 Model Description (PAF Model)
Feigenbaurn (1974) proposed a model to analyse quality cost that is almost