A fuzzy quality cost estimation method

Quality cost control is one of the most important aspects in the development of a quality management system. This paper presents a method for the estimation of quality cost that aims to take into account the so-called hidden quality costs, which are typically unobserved or unknown. Although this is a subject that has already been approached in other studies, subjectivity and uncertainty are not included in their formal approach, which any attempt to address hidden quality costs should include. Our methodology begins by observing the position each business occupies in Crosby’s Quality Management Maturity Grid. Obtaining the stage index on the basis of the experts’ opinions permits the valuation of the company’s membership for each of the stages of Crosby’s Maturity Grid. The application of Crosby’s corrector coefficient to an adequate weighting of the stage index makes it possible to obtain the fuzzy number quality cost. The measures obtained and their short-term predictions enable us to know the situation at all times and act accordingly, establishing precise corrective plans that will correct tendencies and make continuous improvement possible

Quality cost management in Moroccan industrial companies: empirical study

Purpose: The purpose of this study is to give an insight into the practices of Moroccan industrial companies in the area of managing quality costs. Furthermore, it analyses how the quality costing system (QCS) implementation and sophistication differentiate according to a number of variables (size, business market orientation, QMS Maturity...). Design/methodology/approach: In order to achieve this objective, a questionnaire survey has been conducted among a heterogeneous sample of 1000 industrial companies that are operating in the national territory yielding a response rate of 23.4%. This study uses exploratory and chi-square test in the process of answering the above-mentioned questions. Findings: The survey highlighted the limited use of quality costing practices among Moroccan industrial companies. Results indicated that 42.6% of surveyed companies are engaged in QCS while 63.4% of them do not. The primary barrier is the complexity of QCS implementation. Besides, findings pointed out that origin, business activity, business market orientation and QMS maturity level are prominent to QCS implementation (p < 0.05). Originality/value: This is one of the first studies to provide an insight into practices of Moroccan industrial companies in the area of managing quality costs. Indeed, several studies were led in different countries but no empirical study has been conducted in Morocco. This will give a clear picture of the situation at the national level. Research limitations/implications: The major limitation of the study is the limited number of respondents. Future researches should be conducted to cover a bigger sample size from manufacturing and services sector as well. Practical implications: The findings provide an insight into the barriers to QCS implementation which can be used as basis to identify ways to overcome these difficulties, to develop guideline and reveal best practices in the implementation of COQ reporting system.Peer Reviewe

Effect of Production Volume on Prevention Costs, Valuation Costs, and Damaged Products in the Seafood Processing Industry

The purpose of this study was to determine the effect of production volume on prevention costs, the effect of production volume on appraisal costs, the effect of production volume on damaged products, the Effect of prevention costs on damaged products, and the effect of appraisal costs on damaged products. This type of research is quantitative. The type of research data is secondary data for 2019-2020 which consists of reports on production volume, prevention costs, appraisal fees, and damaged products. The analytical method uses the Smart Partial Least Square (SmartPLS) software 3. The results of this study indicate that production volume has a positive and significant effect on prevention costs, production volume has a positive and significant effect on appraisal costs, production volume has a positive and significant effect on damaged products, prevention costs have a negative but not significant effect on damaged products, and appraisal costs have a positive but not significant effect on damaged products. All hypotheses put forward in this study were declared accepted. The implications of the results of this study can be taken into consideration for companies by comparing data on handling costs, appraisal costs, production volume

Quality cost management in Moroccan industrial companies: Empirical study

Purpose: The purpose of this study is to give an insight into the practices of Moroccan industrial companies in the area of managing quality costs. Furthermore, it analyses how the quality costing system (QCS) implementation and sophistication differentiate according to a number of variables (size, business market orientation, QMS Maturity...). Design/methodology/approach: In order to achieve this objective, a questionnaire survey has been conducted among a heterogeneous sample of 1000 industrial companies that are operating in the national territory yielding a response rate of 23.4%. This study uses exploratory and chi-square test in the process of answering the above-mentioned questions. Findings: The survey highlighted the limited use of quality costing practices among Moroccan industrial companies. Results indicated that 42.6% of surveyed companies are engaged in QCS while 63.4% of them do not. The primary barrier is the complexity of QCS implementation. Besides, findings pointed out that origin, business activity, business market orientation and QMS maturity level are prominent to QCS implementation (p<0.05). Originality/value: This is one of the first studies to provide an insight into practices of Moroccan industrial companies in the area of managing quality costs. Indeed, several studies were led in different countries but no empirical study has been conducted in Morocco. This will give a clear picture of the situation at the national level. Research limitations/implications: The major limitation of the study is the limited number of respondents. Future researches should be conducted to cover a bigger sample size from manufacturing and services sector as well. Practical implications: The findings provide an insight into the barriers to QCS implementation which can be used as basis to identify ways to overcome these difficulties, to develop guideline and reveal best practices in the implementation of COQ reporting system

Process-systemic approach to quality cost modelling

Циљ рада је да се најпре спозна стање у области трошкова квалитета у пракси, као и да се утврди потреба за дефинисањем модела трошкова квалитета процесно-системске оријентације. Истраживање је спроведенo над 186 организационих система, различитих делатности. Само организациони системи који су упознати са терминологијом и основном идејом трошкова квалитета селектовани су за ово истраживање. База таквих организационих система формирана је на основу три индикатора њихове упознатости са облашћу трошкова квалитета. Резултати показују да је присутан висок ниво свести о значају трошкова квалитета као и тренд раста броја организационих система који почињу да практикују менаџмент трошкова квалитета. Издвојени су фактори који утичу на системе менаџмента трошкова квалитета и анализиране су везе између варијабли које описују ове системе. Осим тога, издвојени су захтеви стандарда ISO 9001:2015 који су, у односу на став који организације имају о утицају њиховог испуњења на адекватност менаџмента трошкова квалитета, у статистички значајној вези са варијаблама које описују системе менаџмента трошкова квалитета. С обзиром да су резултати истраживања указали и на потребу за дефинисањем модела трошкова квалитета процесно-системске оријентације, у раду је PAF модел употребљен на нивоу процеса, с даљим циљем израде модела трошкова квалитета, у оквиру ког се елементи трошкова квалитета посматрају у односу на излазе из процеса и где се примењује принцип да један процес утиче на квалитет других процеса преко својих излаза.The objective of the paper is to expand the level of knowledge about quality costing in current practice, and to determine the need for defining а quality cost model in the contex of process-systemic approach. The paper presents a study that was conducted on 186 companies, from different industries. Only companies that are familiar with quality costs were selected for the research. The database of companies for the research was formed using three indicators of the companies’ familiarity with quality costs. The results show that there is a high level of awareness of quality costs importance, and that there is an increase in the number of companies managing these costs. Factors affecting quality costs management systems were pointed out, and associations among variables which define those systems are analysed. In addition, the requirements of standard ISO 9001:2015, which are in statistically significant association with the variables defining quality costs management, were selected according to the companies’ standpoint towards the importance of their fulfillment. Given that the research results point to the need for defining а quality cost model in the contex of process-systemic approach, the PAF model is used in this paper on the process level, in order to propose a quality cost model where the elements of quality costs are considered in relation to the outputs of the processes, and where the principle that one process affects the quality of another process by its outputs is taken into consideration. In the model, quality costs are determined for each process in two moments: the current (before taking measurs) and expected (after taking measurs)