Cost of quality: evaluating the health of British manufacturing industry

Abstract

Depending on the orientation and thinking, “quality” can be considered to be “free” or “to be paid for”. Industrial revolution in different parts of the world started at different times and now there is a consensus that quality, like any other commodity, has to be paid for. Suggests that the boardroom is concerned with quality only when it is expressed in terms of lost profit as a ratio of sales turnover or a similar measure. It is therefore important that the cost of quality is used as a management tool and as an indicator of the economic health of the organization. Reveals that there is some evidence in the literature, supported by the results of our survey, that organizations are sceptical about the real strength of this tool which was proposed, in the present format, by Joseph Juran in the 1950s. Highlights the importance and strength of this tool and establishes the relative position of the manufacturing sector in the UK through a detailed survey. Reports on the conclusions arrived at, and demonstrates that British manufacturing industry is ready to turn the corner.

Citation

Kumar, K. and Brittain, J.C. (1995), "Cost of quality: evaluating the health of British manufacturing industry", The TQM Magazine, Vol. 7 No. 5, pp. 50-57. https://doi.org/10.1108/09544789510098641