A Practical, Systematic Approach to Understanding Cost of Quality: A Field Study

Presents a practical conceptual framework designed to determine the cost of quality based on nonconformance to a set of quality standards. This framework was implemented in a manufacturing environment. It utilizes an open system architecture which stresses a customer orientation. In this context, customer influence determines what is important in terms of quality. Standards are established for these elements which are used to gauge the performance and efficiency of the manufacturing process. Poor performance is then quantified in terms of relevant costs. The framework is designed to go beyond conventional cost of quality and nonconformance models, as it offers a solution path which utilizes employees to improve areas of nonconformance. Cultural, informational and technical organizational requirements needed to implement the framework advocated here are outlined