System dynamics approach to analysing the cost factors effects on cost of quality
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 31 July 2009
Abstract
Purpose
The purpose of this paper is to propose a model for analysing the influence of costs of quality.
Design/methodology/approach
A model is designed by using a causal loop diagram and is analysed through a system dynamics approach. The model simulation is prepared by Vensim software.
Findings
Prevention and appraisal costs are the two effective cost factors. The model represented in this paper reveals that prevention costs have the most effect on total cost of quality and especially external failure costs. Hence, in order to achieve the customer expected quality level, prevention and appraisal costs should be considered.
Research limitations/implications
Calculating and measuring non‐conformance costs is very difficult in organizations and some errors and mistakes may happen.
Practical implications
A system dynamics approach can analyse and measure the amount of prevention cost effects on cost of quality in different organizations.
Originality/value
The proposed methodology demonstrates the use of an innovative approach in developing a cost of quality concept and constructing a practical framework for system dynamics in a real case.
Keywords
Citation
Kiani, B., Shirouyehzad, H., Khoshsaligheh Bafti, F. and Fouladgar, H. (2009), "System dynamics approach to analysing the cost factors effects on cost of quality", International Journal of Quality & Reliability Management, Vol. 26 No. 7, pp. 685-698. https://doi.org/10.1108/02656710910975750
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited