Quality costing of an administrative process

Abstract

The purpose of this paper is to describe a methodology for measuring “cost of poor quality” within an administrative process. The methodology provides primarily a process analysis tool, but it can also be used as a quality measurement technique and a platform for activity based costing. The methodology was developed in the Scottish Legal Aid Board ‐ a non‐departmental public body ‐ addressing the key administrative process of invoice payment. An initial pilot study was enlarged into a full evaluation which combined the quantification of “quality costs” using a novel cost model with the identification of process weaknesses as part of the “analysis” phase of a new computer system development. The paper addresses some of the general practical considerations in launching cost of poor quality measurement schemes.

Citation

Merle Bland, F., Maynard, J. and Herbert, D.W. (1998), "Quality costing of an administrative process", The TQM Magazine, Vol. 10 No. 5, pp. 367-377. https://doi.org/10.1108/09544789810231252