Development of Quality Cost Models within a Supply Chain Environment

Determining the quality cost is one of the best ways that can assist industrial or business organizations to know clearly the investment and return of their quality improvement efforts. The information provided by accurate quality cost calculation is also a significant tool that can assist our assessment of the effectiveness of quality management system, as well as identification of quality issues within the organization and creation of opportunities for improvement. It has been noted that there is insufficient research regarding calculating cost of quality using a standard cost elements model .There is a need for a methodology to describe and develop a quality cost model using international standard. The purpose of this research is to show the development of a quality cost model that includes all possible quality cost components such as Prevention, Appraisal and Failure (P.A.F). This research studies various quality cost models, based on reviewing and analyzing these models a generic quality cost model is developed. The proposed model can be used as a tool to calculate various quality costs. In addition, it is used to determine the most failure cost. A case study is used to validate the proposed model. In this case, the implementation shows that the model is able to identify and quantify the hidden cost related to the quality in products assembly plant. Also, it identify the potential improvement opportunities within the plant. The expected significance of this research is to develop a quality cost model that can bring a light to the status of a quality system .The analysis of the outcome will be a significant management tool that helps to identify the non-value adding activities