Hidden quality costs and the distinction between quality cost and quality loss

Georgios Giakatis · Takao Enkawa · Kazuhiko Washitani

90 citations0/0 files storedTotal Quality Management

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Management Systems and Quality Improvement Management and Optimization Techniques Quality and Supply Management

Abstract

Thus far, it has been usual to distinguish quality costs as prevention, appraisal and failure costs. In this paper, we propose that prevention, appraisal and failure are not the only quality costs. There are other hidden costs that are identified in this paper. The importance of the hidden costs that are the manufacturing loss and the design loss is stretched, as they are large and they cannot be overlooked. Also, prevention, appraisal and failure are classified as quality costs and quality losses. So, we introduce the categories of prevention loss and appraisal loss. Finally, a case study is presented, in order to support the validity of the proposal.

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References

1952Quality-Control Handbook.1961Total quality control 1989Juran on Leadership For Quality 1984Quality without tears 1998Fundamentals of Total Quality Management 1990Principles of Quality Costs: Principles, Implementation, and Use 1987Two New Dimensions in the Cost of Quality

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2009System dynamics approach to analysing the cost factors effects on cost of quality 2011Tracking hidden quality costs in a manufacturing company: an action research 2008The dynamics of quality costs in continuous improvement 2013Hidden Costs in the Evaluation of Quality Failure Costs 2006Increasing the visibility of hidden failure costs 2014Determining the cost of poor quality and its impact on productivity and profitability 2012Activity-based costing approach in the measurement of cost of quality in SMEs: a case study

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