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Development of empirical quality cost model for a manufacturing industry

Author

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  • S.B. Jaju
  • R.R. Lakhe
  • S.S. Bhagade

Abstract

In today's world of globalisation, it is considered that a business without quality products or services will not survive. Quality-related costs arise from a number of activities and involve every department in an industry, which are ultimately affecting the quality of the product or service. In order to satisfy the customer's need at lower cost, one should know the interactions between quality-related activities associated with prevention, appraisal, internal failure and external failure costs. Several authors point to the need and value of understanding the relationship between total quality cost and other cost categories. In this paper, an attempt is made to establish the mathematical relationship using regression analysis between quality cost and its cost component. The effect of each cost component on total quality cost is studied with the help of data collected in a manufacturing industry. The empirical quality cost model is developed for a manufacturing industry.

Suggested Citation

  • S.B. Jaju & R.R. Lakhe & S.S. Bhagade, 2010. "Development of empirical quality cost model for a manufacturing industry," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 6(1), pages 48-70.
    • Handle: RePEc:ids:ijpqma:v:6:y:2010:i:1:p:48-70
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