Behavior patterns of quality cost categories
Abstract
Purpose
The purpose of this paper is to find out the behavior patterns of different quality cost categories to enable us to take the right decisions in allocating resources for reducing quality costs.
Design/methodology/approach
Costs of quality, existing in a small‐scale industry in India, in the financial year 2006‐2007, were found out. At the start of the financial year 2007‐2008 a quality cost program was implemented in that organization and more resources were allocated for prevention and appraisal cost activities. Subsequently, the costs of quality related to the financial year 2007‐2008 and 2008‐2009 were found out. Based on the quality cost data of three years, co‐relation co‐efficient between the different quality cost categories were calculated.
Findings
The co‐relation co‐efficient between different quality cost categories suggest that by increasing the efforts towards prevention and appraisal activities, costs of non conformance decrease. Furthermore, there exists positive co‐relation within costs of conformance and between costs of non conformance.
Orginality/value
In the competitive modern world, small scale organizations have limited resources. They do not have funds to hire consultants. So, the behaviour patterns of quality cost categories help these organizations to allocate precious resources more effectively and result in the reduction of quality costs thereby improving profitability.
Keywords
Citation
Chopra, A. and Garg, D. (2011), "Behavior patterns of quality cost categories", The TQM Journal, Vol. 23 No. 5, pp. 510-515. https://doi.org/10.1108/17542731111157617
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited