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Comparative Analysis of Quality Costs and Organization Sizes in the Manufacturing Environment

Summary: [This abstract is based on the author’s abstract.] Quality cost categories in small and medium enterprises (SMEs) and large organizations in the manufacturing sector are compared and analyzed. The quality cost model was used as the basis for a proposed empirical model, using data from an online questionnaire to manufacturers and quality professionals. Results show no significant differences in prevention, appraisal, and internal failure costs between SMEs and large organizations, but there were external failure cost differences. Failure costs ranged from 70 to 80 percent of the total quality costs that make up 8 to 10 percent of manufacturing expenses. Primary problems in quality cost implementation resulted from a preference for correction over prevention, human error, inadequate processes, and lack of correct data.

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  • Topics: Cost of Quality
  • Keywords: Manufacturing, Failure cost, Cost analysis, External failure costs, Small business, Cost of quality (COQ)
  • Author: Rodchua, Suhansa
  • Journal: Quality Management Journal