Development of a quantification model for the cost of loss of image with customer complaints

Despite the difficulty in measuring hidden quality costs, we must be aware not only of their existence, but also of their importance. Not surprisingly, they have been the causative factor in the closure of many companies because they are doubly dangerous. One the one hand, they represent very significant quantities of money and, on the other, they remain hidden, like the submerged portion of an iceberg [Campanella, J. (1999). Principles of Quality Costs: Principles, Implementation and Use. Milwaukee, WI: ASQ Quality Press]. Possibly one of the most harmful hidden quality costs, and most difficult to quantify, is the cost of loss of image (CLI) a company suffers because of faults detected by its customers. This paper develops an original tool that, with the use of fuzzy logic as an alternative to probabilistic theory, is capable of facilitating the quantification of the CLI in any company from the observation of its customer complaints. Once the theoretical model is presented, we proceed with its experimentation, making use of a case study as research methodology

Fuzzy Systems in Business Valuation

This research aims to develop a model that is able to integrate and objectify information provided by the different business valuation methods, incorporating quality management in its formal approach, which to date has not been considered in the literature about business valuation or quality management. Firstly, the company is valued using the methods which best adapt to its specific characteristics. Because of the subjectivity inherent in any valuation process, the results will be expressed through Triangular Fuzzy Numbers (TFN). These Fuzzy Numbers will be aggregated and summarized by applying Basic Defuzzification Distribution Uncertain Probabilistic Ordered Weighted Averaging operator (BADD-UPOWA). The weighting factors will be: the degree of confidence in each of the business valuation methods applied, and the innovative use of the company’s position on Crosby’s Quality Administration Grid. The results from application of the model in a case study show a significant reduction in uncertainty in contrast to the initial valuations. Moreover, the proposed methodology is seen to increase the final value of the company as its advances in quality management

Proposal for a Fuzzy Model to Assess Cost Overrun in Healthcare Due to Delays in Treatment

Apart from the effects of treating those infected with COVID‐19, the pandemic has also affected treatment for other diseases, which has been either interrupted or canceled. The aim of this paper is to provide a financial model for obtaining the cost overrun resulting from the worsening of illnesses and deaths for each of the causes considered. To achieve this, first deaths have been classified into causes of death and for each of these causes, an estimation has been made of the worsening condition of patients due to delay in treatment. Through these data, a fuzzy relation between deaths and the worsening condition of patients can be obtained. Next, the expertise process has been used to estimate cost overrun in relation to patients’ pathologies. The experts’ opinions have been aggregated using ordered weighted average (OWA). Lastly, using fuzzy logic again, a correction coefficient has been determined, which optimizes the future implementation of the proposed model without the need for a new estimation of inputs. The paper concludes with a numerical example for a better comprehension of the proposed theoretical model. Ultimately, it provides the scientific community in general and in particular managers of public administration entities with a novel tool for improving the efficiency of the healthcare system

How environmental certification can affect the value of organizations? The case of Forest Stewardship Council certification

Forest certification appeared in the 1990's as a way to deal with forest deterioration. Currently, however, public opposition can limit its effectiveness. Business policy makers should analyze how Forest Stewardship Council (FSC) certification can affect the value of companies. Yet, the relation between financial performance and forest certification systems is a subject which has not been explored to a great extent, and the measures used for evaluating financial performance in published studies are not based on business valuation. In this study, Spanish companies with FSC certification are valuated under the premises of implementation and non-implementation of FSC certification. Given the uncertainty inherent in the second option, the use of fuzzy mathematics has been considered a suitable tool. According to the results obtained, it can be concluded that regardless of size or business sector, FSC certification is effective in increasing the value of companies. The pap er offers economic arguments for managers to become more environmentally responsible

A fuzzy dynamic model for total quality cost

This paper presents a dynamic Quality Cost Model capable of reconciling contributions of Juran’s traditional Model with those of the Zero Defects Model. Here, the cost functions depend on a company’s level of conformance in each period and at which stage of the Maturity Grid a company is positioned. To determine the stage at which the company is positioned on Crosby’s Maturity Grid, expert’s opinions will be considered using fuzzy logic to incorporate Hidden Quality Costs in the failure costs calculated by the company. The model will introduce exponential regression (ER) using Induced Ordered Weighted Average (IOWA). The results show that the learning process present in the proposed model leads it to evolve over time to positions that bring to mind the Zero Defects model. However, as appreciated in the case study, it can also regress and introduce the organisation into a level of saturation where the Cost of Quality is optimised before reaching perfection

The relation between corporate social responsibility certification and financial performance: An empirical study in Spain

The relation between corporate social responsibility (CSR) and financial performance (FP) has been widely dealt with in specialized literature. This study has two points of interest: first, we develop a new tool which financially quantifies the value contributed to companies that are committed to CSR; then, we make a practical application of this tool through an empirical study focused on Spanish companies. This study is especially innovative because of the fuzzy methodology used and the way it defines CSR through the IQNet SR10 certification of social responsibility systems. In addition, the measurement of CSR through IQNet SR10 certification is a completely new approach to the subject. An interesting conclusion can be drawn from the empirical study: IQNet SR10 CSR certification increases the value of businesses. However, neither size nor the economic sector they belong to influence this relationship significantly

A novel approach to improve the bank ranking process: an empirical study in Spain

In this paper, a novel approach to the bank ranking process based on the possibilistic theory is proposed. Through this new method, the sensitivity of the results can be improved. Several methods are applied in order to rank the financial performance of Spanish Banks. Methods such as the Fuzzy Analytic Hierarchy Process (FAHP) and fuzzy TOPSIS are integrated in the proposed model. Criteria and sub-criteria weights are computed based on the judgments of experts using FAHP. These weights and financial indicators are inputs of the fuzzy TOPSIS methods for ranking the banks. The financial ratios are based on the CAMEL rating system criteria. Moreover, the results from the application of several distance measurements (Vertex, Hamming and Euclidean) in fuzzy TOPSIS as well as a new measure based on the possibilistic theory are compared. Finally, the results obtained applying fuzzy TOPSIS show that they vary depending on the separate measure, so it is necessary to have different measures to be able to correct decision making

Direct replacement of antibodies with molecularly imprinted polymer (MIP) nanoparticles in ELISA - development of a novel assay for vancomycin

A simple and straightforward technique for coating microplate wells with molecularly imprinted polymer nanoparticles (nanoMIPs) to develop ELISA type assays is presented here for the first time. NanoMIPs were synthesized by a solid phase approach with immobilized vancomycin (template) and characterized using Biacore 3000, dynamic light scattering and electron microscopy. Immobilization, blocking and washing conditions were optimized in microplate format. The detection of vancomycin was achieved in competitive binding experiments with a HRP-vancomycin conjugate. The assay was capable of measuring vancomycin in buffer and in blood plasma within the range 0.001-70 nM with a detection limit of 0.0025 nM (2.5 pM). The sensitivity of the assay was three orders of magnitude better than a previously described ELISA based on antibodies. In these experiments nanoMIPs have shown high affinity and minimal interference from blood plasma components. Immobilized nanoMIPs were stored for 1 month at room temperature without any detrimental effects to their binding properties. The high affinity of nanoMIPs and the lack of a requirement for cold chain logistics make them an attractive alternative to traditional antibodies used in ELIS

Early warning device for detection of pollutants in water

Due to a growing need to protect water resources from contamination, there is a requirement for the development of more reliable and cost effective devices for water quality monitoring. The aim of the AQUAWARN project is to develop and deploy a fully autonomous water quality monitoring device that can measure nitrite, nitrate, phosphate and pH colorimetrically in fresh water and wastewater, and communicate the information to stakeholders in real time