Title: Development of empirical quality cost model for a manufacturing industry

Authors: S.B. Jaju, R.R. Lakhe, S.S. Bhagade

Addresses: Department of Mechanical Engineering, G.H. Raisoni College of Engineering, CRPF Gate No.3, Digdoh Hills, Hingna Road, Nagpur-440016, India. ' Shreyas Quality Management System, 3rd Floor, Tulsi Vihar, Main Road, Abhyankar Nagar, Nagpur-440010, India. ' Department of Chemical Engineering, Anuradha Engineering College, Anuradha Nagar, Sakegaon Road, Chikhli-443201, Distt: Buldhana, India

Abstract: In today|s world of globalisation, it is considered that a business without quality products or services will not survive. Quality-related costs arise from a number of activities and involve every department in an industry, which are ultimately affecting the quality of the product or service. In order to satisfy the customer|s need at lower cost, one should know the interactions between quality-related activities associated with prevention, appraisal, internal failure and external failure costs. Several authors point to the need and value of understanding the relationship between total quality cost and other cost categories. In this paper, an attempt is made to establish the mathematical relationship using regression analysis between quality cost and its cost component. The effect of each cost component on total quality cost is studied with the help of data collected in a manufacturing industry. The empirical quality cost model is developed for a manufacturing industry.

Keywords: quality cost modelling; quality costs; regression analysis; correlation; manufacturing industry; total quality cost; prevention costs; appraisal costs; internal failure costs; external failure costs.

DOI: 10.1504/IJPQM.2010.033884

International Journal of Productivity and Quality Management, 2010 Vol.6 No.1, pp.48 - 70

Published online: 03 Jul 2010 *

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