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In every manufacturing company, irrespective of size, product and other variables, management are constantly involved in quality‐related decisions which have a direct effect on product quality. An analytical method is described for assessing an organisation's approach to quality management. On application, managers are provided with information on the reality of their quality assurance activities. An overview of some of the issues involved in decision making is provided, followed by an outline of the research methodology, and, finally, the “method” is presented with some results arising from its application.

Without a formulated quality management policy and a direct lead from the chief executive, companies are unlikely to be able to effectively co‐ordinate quality‐related decision making; consequently, the approach to quality tends to be inspection orientated. Results of a study on how quality‐related decisions are made in six companies also suggests that the involvement of quality staff in design, purchasing and market feedback is vital, ensuring that quality‐related decision making is effective and consistent with policy.

A review of the literature of quality‐related costs indicates the domination of the prevention‐appraisal‐failure categorisation of costs, a similar pre‐occupation with in‐house costs and little consideration of supplier and customer‐related costs. Most of the data are of questionable value because not suitably qualified by detailing inclusions and methods of computation, and there is scant coverage of measurement and cost collection, or warnings of limitations in costing exercises. Failure to discuss definitions, and lack of guidance on cost collection and treatment of overheads and valuation of scrap are all notable omissions in the literature so far.

The importance of quality costs and benefits is sometimes not recognised by industrial managers. Quality costs money but the benefits which accrue are elusive and hard to quantify. The way in which quality costs have been regarded in the past are reviewed and the old basis challenged. A new basis for recognising and exploiting quality benefits is proposed.

During the years 1995/96 a special survey was organised by the Chemical Engineering department of the NTUA (National Technical University of Athens) aiming at the examination of the conditions for the introduction of quality assurance systems (QAS) in Greek enterprises, the identification of the most important problems and the evaluation of the resulting benefits. Although the major motivating factor for companies to introduce QAS was market‐related, benefits experienced often refer to the improvement of internal organisational and communication procedures, whereas the main difficulties concern the change in the way of thinking and working. The impact of training on the employees’ motivation, on the difficulties experienced and on the negative reactions of the staff indicates its significant role for the proper implementation of the system.

This study develops an integrated theory about how Total Quality Management (TQM) based capabilities can be leveraged for Environmentally Responsible Manufacturing (ERM). It suggests that efforts should be coordinated to take advantage of the potential synergies between TQM and ERM. The means for capturing these synergies might be accomplished by using the Malcolm Baldrige National Quality Award (MBNQA) framework. The MBNQA framework was adapted to address environmental issues and it was shown that the framework can be used as a basis for an integrative definition of ERM. This adaptation of the MBNQA framework suggests that there is an environmental version of the MBNQA framework and that quality principles can be seamlessly integrated into the practice of managing environmental issues. However, an empirical examination of the linkage between TQM and ERM remains untested. The findings of this study provide an important foundation for accomplishing this goal.

The costs, benefits and implications of BS5750/ISO9000 certification for small and medium‐sized firms are investigated on the basis of a review of published literature and a survey of the actual experience of a representative sample of firms. The principle motivation for installing BS5750‐based quality systems appears to be customer pressure; retaining existing customers is a key benefit. A minority of firms discover that “internal” benefits, such as greater control and discipline, turn out to be more valuable. Developing and installing a BS5750‐based system is a major exercise for small firms but through reductions in quality costs, the costs of certification can typically be recovered within three years of commencing to operate the system. The attitude of the chief executive is a key determinant of effectiveness.

Small companies have limited management and financial resources and, although better quality assurance will in the longer term reduce manufacturing costs, many are intimidated by the set up and running costs of certification under an approved scheme such as BS 5750. The article describes the first year's operation of a pilot scheme intended to help small companies resolve these problems. Experienced quality managers, recruited by an academic institution and with the institution's backing, have acted as managers for a group of small companies on a shared cost basis. The experience gained from this scheme is discussed.

This paper aims to present a survey of published literature about various quality costing approaches and reports of their success in order to provide a better understanding of cost of quality (CoQ) methods.

The paper's approach is a literature review and discussion of the issues surrounding quality costing approaches.

Even though the literature review shows an interest by the academic community, a CoQ approach is not utilized in most quality management programs. The evidence presented shows that companies that do adopt CoQ methods are successful in reducing quality costs and improving quality for their customers. The survey shows that the method most commonly implemented is the classical prevention‐appraisal‐failure model; however, other quality cost models are used with success as well.

The paper shows that the selected CoQ model must suit the situation, the environment, the purpose and the needs of the company in order to have a chance to become a successful systematic tool in a quality management program.

Examines the associations between ten integrated quality management constructs and the resulting product quality. Analyzes responses from plant managers of 449 auto‐parts firms using stepwise regression. Notes three primary predictors (customer focus, empowerment, and supplier quality management) explaining 26 per cent of variation in product quality. Examines the role of top management commitment in TQM implementation by splitting the sample into firms with high and low top management commitment based on the mean score on this construct. Concludes, first, that firms with high top management commitment produce high quality products despite variations in individual constructs, and, second, that in firms with low top management commitment, four other constructs, i.e. customer focus, supplier quality management, empowerment, and internal quality information usage are primary predictors of product quality.