Examining the Impact of Speed of Quality Improvement on Quality-Related Costs

Abstract

The Fine (1986) quality‐based learning curve model is extended to include the consideration of speed of quality improvement. The model demonstrates that under different circumstances rapid quality improvement effects are either beneficial or detrimental to improvement in quality‐related costs. Hypotheses are developed from the analysis of this speed of quality improvement model. The hypotheses are tested in an automotive parts manufacturing company with five similar plants. Results show that with an increase in the speed of quality improvement, the rate of growth in prevention and appraisal costs decrease and the rate of growth in failure costs are unaffected. Rapid speed of quality improvement does yield lesser decreases in failure costs than slower, steadier improvement. However, rapid speed of quality improvement does not yield the predicted lesser decrease in prevention and appraisal costs than slower, steadier improvement. Rapid speed of quality improvement might or might not benefit the organization, perhaps an explanation for some Total Quality Management (TQM) failures. A more deliberate, learning organization is suggested from this research.

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