The relationship between quality and quality cost for a manufacturing company

Vincent K. Omachonu, Sakesun Suthummanon, Norman G. Einspruch

Research output: Contribution to journalArticle

39 Scopus citations

Abstract

This paper examines the components of quality cost (internal failure, external failure, appraisal cost, and prevention cost) in the context of two key manufacturing inputs, materials and machines; the concept is also explained for the company as a whole. The purpose of this research is to analyze the variables that impact quality in a manufacturing environment. There are three major findings in this research. First, there is an inverse relationship between appraisal cost plus prevention cost and failure cost. Second, the relationship between appraisal cost plus prevention cost and quality is positive. Finally, failure cost is negatively correlated with quality. This analysis also revealed a strong relationship between appraisal cost plus prevention cost and quality for material input, machine input, and the company. The results indicate that as the appraisal cost plus the prevention cost increases, quality improves and failure cost decreases.

Original languageEnglish (US)
Pages (from-to)277-290
Number of pages14
JournalInternational Journal of Quality and Reliability Management
Volume21
Issue number3
DOIs
StatePublished - Dec 1 2004

Keywords

  • Performance appraisal
  • Prevention costs
  • Quality costs

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Strategy and Management

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