Purpose: The main purpose of this paper is to focus on the quality costs influence direction and intensity on the added value in the aspect of value chain.
Methodology/Approach: The article is based on a nomothetic point of view that includes three modules: conceptual, hypothetical – deductive and inductive methods. To formulate theoretical aspects of quality costs evaluation, comparative and chronological analysis of scientific literature is used. Empirical results of the research are obtained by applying method of expert evaluation.
Findings: During expert evaluation procedure is identified and selected significant quality costs elements. It is a useful tool to identify quality costs thought value chain processes. Created model of quality costs assessment in the aspect of value added chain is based on identification and classification of quality costs elements and allows to measure and to evaluate influence of quality costs,
its direction and intensity on the added value.
Research Limitation/implication: The formulated model of quality costs assessment in the aspect of value added chain is assigned to the models that “are oriented towards the situation”, i.e. diverted towards organizational analyses.
Originality/Value of paper: The paper complements the gap between theoretical and practical framework of determining influence of quality costs on added value and proves importance of the assessment of quality costs elements in the aspect of added value chain.
Akkoyun, O., and Ankara, H., 2009. Cost of quality management: an empirical study from Turkish marble industry. Academic Journals. Scientific Research and Essay, 4(11), pp.1275-1285.
APQC, 2012. PCF – Process Classification Framework - APQC. USA. Avialable at http://www.apqc.org/process-classification-framework [accesses 12 June, 2012].
Atkinson, R., 1999. Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria. International journal of project management, 17(6), pp.337-342.
Australian standart, 2012. AS 2561-1982 Guide to the determination and use of quality costs. Standards Australia: AS.
Bamford, D. R., and Land, N., 2006. The application and use of the PAF quality costing model within a footwear company. International Journal of Quality & Reliability Management, 23(3), pp.265-278.
Barnes, S. J., 2002. The mobile commerce value chain: analysis and future developments. International Journal of Information Management, 22(2), pp.91-108.
Buthmann, A., 2007. Cost of Quality: Not Only Failure Costs - iSixSigma. Available at: http://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/ [Accessed 07 May, 2015].
Calegre, F. A., & Papa, J. R. C., 2007. An empirical study of a quality cost system implementation: case study in a Brazilian machine tools manufacturer. Cuadernos de estudios empresariales, (17), pp.55-73.
Campanella, J., 1999. Principles of Quality Costs: principles, implementation and use. 3rd ed. New Delhi: Prentice-Hall.
Castillo-Villar, K. K., Smith, N. R., and Simonton, J. L., 2012. A model for supply chain design considering the cost of quality. Applied Mathematical Modelling, 36(12), pp.5920-5935.
Cheah, S., Shahbudin, A. S. M., and Taib, F. M., 2011. Tracking hidden quality costs in a manufacturing company: an action research. International Journal of Quality & Reliability Management, 28(4), pp.405-425.
Chopra, A., and Garg, D., 2011. Behavior patterns of quality cost categories. The TQM Journal, 23(5), pp.510-515.
Chopra, A., and Garg, D., 2012. Introducing models for implementing cost of quality system. The TQM Journal, 24(6), pp.498-504.
Christopher, M., 2005. Logistics and supply chain management: creating value-adding networks. Chester: Pearson education.
Crosby, P. B., 1979 a. Quality is free: The art of making quality certain, 94. New York: McGraw-Hill.
Crosby, P. B., 1979b. Quality is free: The art of making quality free. New York: McGraw-Hill.
Curkovic, S., Sroufe, R., and Landeros, R., 2008. Measuring TQEM returns from the application of quality frameworks. Business Strategy and the Environment, 17(2), pp.93-106.
Cekanavicius, V., Murauskas, G., 2014. Taikomoji regresinė analizė socialiniuose tyrimuose. Vilnius: Vilniaus universiteto leidykla.
Dale, B.G. and Plunkett, J.J., 1995. Quality Costing, 2nd ed. London: Chapman and Hall.
Dale, B. G., and Plunkett, J. J., 1999. Quality costing. Farnham: Gower Publishing, Ltd.
Dale, B.G. and Wan, G.M., 2002. Setting up a quality costing system: an evaluation of the key issues. Business Process Management Journal, 8(2), pp.104–116.
De, R. N., 2009. Quality costing: An efficient tool for quality improvement measurement. In: IEEE Industrial Engineering and Engineering Management, 16th International Conference on. Beijing, China, 21 - 23 October 2009.
Edward, M., and Sahadev, S., 2011. Role of switching costs in the service quality, perceived value, customer satisfaction and customer retention linkage. Asia Pacific Journal of Marketing and Logistics, 23(3), pp.327-345.
Eldridge, S., Balubaid, M., and Barber, K. D., 2006. Using a knowledge management approach to support quality costing. International Journal of Quality & Reliability Management, 23(1), pp.81-101.
Emsley, D., 2008. Different interpretations of a “fixed” concept: Examining Juran's cost of quality from an actor-network perspective. Accounting, Auditing & Accountability Journal, 21(3), pp.375-397.
Feigenbaum, A. V., 1951. Quality control. New York: McGraw-Hill.
Fons, L. A. S., 2012. Integration of quality cost and accounting practices. The TQM Journal, 24(4), pp.338-351.
Freeman, J. M., 2008. The case for quality costing simulation. The TQM Journal, 20(5), pp.476-487.
Giakatis, G., Enkawa, T., and Washitani, K., 2001. Hidden quality costs and the distinction between quality cost and quality loss. Total Quality Management, 12(2), pp.179-190.
Goulden, C., and Rawlins, L., 1995. A hybrid model for process quality costing. International Journal of Quality & Reliability Management, 12(8), pp.32-47.
Harington, H. J., 1987. Poor-quality cost. New York: M. Dekker.
Yang, C.C., 2008. Improving the definition and quantification of quality costs. Total Quality Management Journal, 19(3), pp.175-191.
Jaju, S., Mohanty, R., and Lakhe, R., 2009. Towards managing quality cost: A case study. Total Quality Management, 20(10), pp.1075-1094.
Juran, J.M. and Gryna, F. M., 1988. Quality Control Handbook. 4th ed. New York: McGraw-Hill.
Juran, J.M., 1951. Quality Control Handbook. 1 st ed. New York: Mcgraw-Hill.
Juran, J.M., and Godfrey, A.B., 1998. Juran‘s Quality Control Handbook. 5th ed. New York: Mcgraw-Hill.
Kaner, C., 1996. Quality cost analysis: Benefits and risks. Software QA, 3(1), p.23.
Kaplinsky, R. and Morris, M., 2001. A handbook for value chain research, 113. Ottawa: IDRC.
Kaplinsky, R., 2000. Globalisation and unequalisation: What can be learned from value chain analysis?. Journal of development studies, 37(2), pp.117-146.
Kaplinsky, R., 2004. Spreading the gains from globalization: What can be learned from value-chain analysis?. Problems of Economic Transition, 47(2), pp.74-115.
Kiani, B., Shirouyehzad, H., Bafti, F. K., and Fouladgar, H., 2009. System dynamics approach to analysing the cost factors effects on cost of quality. International Journal of Quality & Reliability Management, 26(7), pp.685-698.
Kim, S., and Nakhai, B., 2008. The dynamics of quality costs in continuous improvement. International Journal of Quality & Reliability Management, 25(8), pp.842-859.
Krishnan, S. K., 2006. Increasing the visibility of hidden failure costs. Measuring business excellence, 10(4), pp.77-101.
Krishnan, S. K., Agus, A., and Husain, N., 2000. Cost of quality: the hidden costs. Total Quality Management, 11(4-6), pp. 844-848.
Lesser, W., 1954. Cost of quality. Industrial Quality Control, 11(5), pp.11-14.
Lorente, A. R. M., Rodriguez, A. G., and Rawlins, L., 1998. The cumulative effect of prevention. International Journal of Operations & Production Management, 18(8), pp.727-739.
Luther, R., and Sartawi, I. I., 2011. Managerial practices of quality costing: an evidence-based framework. International Journal of Quality & Reliability Management, 28(7), pp. 758-772.
Machowski, F., & Dale, B. G., 1998. Quality costing: An examination of knowledge, attitudes, and perceptions. Quality Management Journal, 5(3).
Miguel, P. C., & Pontel, S., 2004. Assessing quality costs of external failures (warranty claims). International Journal of Quality & Reliability Management, 21(3), pp.309-318.
Moen, M., 1998. New quality cost model used as a top management tool. The TQM Magazine, 5, pp.334-341.
Omachonu, V. K., Suthummanon, S., & Einspruch, N. G., 2004. The relationship between quality and quality cost for a manufacturing company. International Journal of Quality & Reliability Management, 21(3), pp.277-290.
Porter, L. J., & Rayner, P., 1992. Quality costing for total quality management. International Journal of Production Economics, 27(1), pp.69-81.
Ramdeen, C., Santos, J., and Chatfield, H. K., 2007. Measuring the cost of quality in a hotel restaurant operation. International Journal of Contemporary Hospitality Management, 19(4), pp.286-295.
Ramudhin, A., Alzaman, C., and Bulgak, A. A., 2008. Incorporating the cost of quality in supply chain design. Journal of Quality in Maintenance Engineering, 14(1), pp.71-86.
Reed, R., Lemak, D. J., and Mero, N. P., 2000. Total quality management and sustainable competitive advantage. Journal of Quality Management, 5(1), pp. 5-26.
Roden, S., and Dale, B. (2000). Understanding the language of quality costing. The TQM Magazine, 12(3), pp.179-185.
Rust, R. T., Moorman, C., and Dickson, P. R., 2002. Getting return on quality: revenue expansion, cost reduction, or both?. The Journal of Marketing, pp.7-24.
Setijono, D. and Dahlgaard, J.J., 2008. The value of quality improvements. International Journal of Quality & Reliability Management, 25(3), pp. 298-312.
Sharabi, M., and Davidow, M., 2010. Service quality implementation: problems and solutions. International Journal of Quality and Service Sciences, 2(2), pp. 189-205.
Sörqvist, L., 1998. Poor quality costing. KTH.
Sower, V. E., 2004. Estimating External Failure Costs: A Key Difficulty in COQ Systems. Toronto: Annual Quality Congress Proceedings.
Sower, V. E., Quarles, R., and Broussard, E., 2007. Cost of quality usage and its relationship to quality system maturity. International Journal of Quality & Reliability Management, 24(2), pp. 121-140.
Srivastava, S.K., 2008. Towards estimating cost of quality in supply chains. Total Quality Management & Business Excellence, 19(3), pp. 193–208.
Tawfek, H. S., Mohammed, H. E. D. H., and Razek, M. E. A., 2012. Assessment of the expected cost of quality (COQ) in construction projects in Egypt using artificial neural network model. HBRC journal, 8(2), pp. 132-143.
Tannock, J. and Saelem, S., 2007. Manufacturing disruption costs due to quality loss. International Journal of Quality & Reliability Management, 24(3), pp. 263 – 278.
Tena, A. B. E., Llusar, J. C. B., and Puig, V. R., 2001. Measuring the relationship between total quality management and sustainable competitive advantage: A resource-based view. Total quality management, 12(7-8), pp. 932-938.
Tye, L. H., Halim, H. A., and Ramayah, T., 2011. An exploratory study on cost of quality implementation in Malaysia: The case of Penang manufacturing firms. Total Quality Management & Business Excellence, 22(12), pp. 1299-1315.
Uyar, A., 2008. An exploratory study on quality costs in Turkish manufacturing companies. International Journal of Quality & Reliability Management, 25(6), pp. 604-620.
Weheba, G. S., and Elshennawy, A. K., 2004. A revised model for the cost of quality. International Journal of Quality & Reliability Management, 21(3), pp. 291-308.
Wood, D. C., 2013. Principles of Quality Costs: Financial Measures for Strategic Implementation of Quality Management. 4th ed. U.S: American Society for Quality, Quality Press.