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1 – 10 of over 1000This study aims to discover a practical and effective way to apply the quality cost concept in Strategic Cost Management (SCM) framework. The interaction of preventive, appraisal…
Abstract
Purpose
This study aims to discover a practical and effective way to apply the quality cost concept in Strategic Cost Management (SCM) framework. The interaction of preventive, appraisal and failure (PAF) activities in a company's internal value chain will be the starting point of SCM implementation.
Design/methodology/approach
This study begins by establishing value chain and quality costs as the scope of conceptual analysis. Discussions on the interrelationships between activities, quality and costs were gathered to clarify conceptual and practical gaps in the scope of the study. The PAF quality cost model is applied to find viable, practical solutions. The costs of activities will serve as performance indicators.
Findings
The PAF quality cost model depicts opportunities to lower costs and increase profit in a business simultaneously; current poor quality costs are the benchmark. Identifying PAF activities and costs in the business value chain and linking it with others is crucial in evaluating SCM applications. These linkages will generate a Quality Cost Chain (QCC). The leading indicator of improvement is a higher ratio between new possible failure costs (FC) and the combination of prevention and appraisal costs (PAC) than the current value, followed by a lower total quality cost (TQC). The subsequent attention is a lower ratio between the appraisal cost (AC) and prevention cost (PC). Mathematically, for assessing the operability of new quality-related activities, ΔPACnew < ΔFCnew, TQCnew < TQCcurrent, (FC/PC)new>(FC/PC)current and (AC/PC)new<(AC/PC)current are proposed as feasible conditional-quantitative improvement criteria.
Research limitations/implications
This study only discusses the relationship between quality costs and activities related to quality management in the PAF quality cost model, not cost behavior. This limitation opens up opportunities for future research that intends to link QCC with cost behavior in the context of managerial accounting and Strategic Cost Management. The use of QCC in certain industrial areas is the next research opportunity. The variety of PAF activities this study addresses originates from a wide range of industrial sectors; QCC research by sector may produce unique industrial quality cost phenomena.
Practical implications
QCC will make it easier for managers to evaluate how strategically their departments or activities contribute to quality costs at the departmental or organizational level, as well as to effectively and efficiently improve quality cost performance.
Originality/value
The quality-related activity and quality cost issues are still rarely treated as subjects of research studies in the field of Strategic Cost Management. Even so, the discussion tends to be very broad, complex and difficult to apply. This study combines a simple diagrammatic and mathematical approach to simplify the discussion and, at the same time, manage the value of strategic quality management.
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Nandini Sharma and Boeing Laishram
Construction industry faces challenges in making objective decisions due to monetary value attached to quality. Among various quality management techniques available, cost of…
Abstract
Purpose
Construction industry faces challenges in making objective decisions due to monetary value attached to quality. Among various quality management techniques available, cost of quality (COQ) is one such method used to address the concern. However, the absence of measurable COQ factors to monitor quality costs hampers the implementation of COQ framework in the construction industry. Therefore, this study aims to identify COQ factors focused on visible factors (VF) and hidden factors (HF) and the current requirements to achieve it.
Design/methodology/approach
This study is based on Preferred Reporting Items for Systematic Review and Meta-Analyses protocol guidelines. The present study identified 57 articles published between 1992 and 2023 in peer-reviewed journals.
Findings
The findings reveal 22 factors, which are grouped into four categories based on COQ. Through systematic review, the authors observed limited methodological and theoretical diversity. In fact, there are no quantitative frameworks to calculate COQ. The study, therefore, developed a framework comprising four major routes/paths of COQ factors within the framework.
Practical implications
The COQ routes developed through this study will enable the practitioners to meticulously categorise VF and HF, facilitating quantifying of quality throughout the lifecycle of project, which is currently absent from the existing quality assurance/quality control (QA/QC) approach. In addition, these COQ routes stand as essential construction strategies, significantly enhancing outcomes related to time, cost, quality, sustainability and fostering closer relationships within project frameworks.
Originality/value
The current study contributes significantly to the existing body of knowledge by developing various COQ routes and proposing future research directions to address gaps in the literature.
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Abdul Habib Zaray, Abid Hasan, Sparsh Johari, Parvez Ahmad Hashmat and Kumar Neeraj Jha
The poor quality of construction work in war-affected regions is a significant issue. The large-scale destruction to the existing infrastructure from the war necessitates cost and…
Abstract
Purpose
The poor quality of construction work in war-affected regions is a significant issue. The large-scale destruction to the existing infrastructure from the war necessitates cost and time-efficient delivery of construction projects during and post-war to bring normalcy to affected lives and places. Consequently, there is always a tendency to finish construction projects in the shortest possible time on a limited budget without following the proper quality management processes. However, the poor quality of construction projects continues to affect the country's development, growth, credibility, reputation, and public safety for several years after the war. To this end, the present study was conducted to evaluate the significant attributes and factors contributing to the poor quality of construction projects in the war-affected Afghan construction sector.
Design/methodology/approach
A total of 31 attributes influencing construction project quality were ranked based on 110 completed survey responses collected from Afghan construction professionals. Moreover, independent samples t-test, Spearman's rank correlation test, and exploratory factor analysis were conducted.
Findings
The study found a moderate consensus between clients and contractors on attributes' rankings. In addition, the independent samples t-test showed statistically significant differences in means values of responses from clients and contractors for eight attributes. Based on factor analysis, 19 important attributes (median value greater than or equal to four) were classified into 4 latent factors – (1) poor-quality assurance and control, (2) unethical practices, (3) design and drawing errors, and (4) knowledge and skills gap.
Originality/value
Evaluating the factors affecting the quality of construction projects will help clients, government departments, and construction practitioners improve the construction quality management practices. The findings will also inform the policies and procedures of international aid providers.
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Babajide Oyewo, Vincent Tawiah and Mohammad Alta’any
This study aims to investigate contextual factors affecting the deployment of strategy-driven manufacturing accounting techniques (SMAT), as well as the impact of SMAT usage on…
Abstract
Purpose
This study aims to investigate contextual factors affecting the deployment of strategy-driven manufacturing accounting techniques (SMAT), as well as the impact of SMAT usage on organisational competitiveness. Seven major SMAT were investigated, namely, benchmarking, integrated performance measurement, environmental management accounting, strategic costing, strategic pricing, strategic investment and life cycle costing.
Design/methodology/approach
By using multi-informant strategy, structured questionnaire was used to gather survey data from 129 senior accounting, finance and production personnel of publicly quoted manufacturing companies in Nigeria. Data was analysed using structural equation modelling and propensity score matching.
Findings
Result shows that the usage rate of the SMAT is generally moderate. Market orientation and deliberate strategy formulation are notable determinants of SMAT usage. The inability of competition intensity and perceived environmental uncertainty to notably affect SMAT usage suggests that external environmental pressure to use SMAT is weak.
Practical implications
Although the impact of SMAT usage on organisational competitiveness is positive and statistically significant, it is conceivable that the impact of SMAT could have been more assuming SMAT recorded extensive usage. Thus, the lack of competitiveness of manufacturing companies in Nigeria may not be unconnected to the superficial usage of SMAT.
Originality/value
The study contributes to knowledge in three ways. First, it extends studies on the contingency theory that contextual factors influence the adoption of management accounting innovations. Second, it exposes the contextual factors affecting the adoption of SMAT in a developing country. Third, it provides evidence on the value relevance of management accounting innovation in enhancing organisational competitiveness.
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Antti Ylä-Kujala, Damian Kedziora, Lasse Metso, Timo Kärri, Ari Happonen and Wojciech Piotrowicz
Robotic process automation (RPA) has recently emerged as a technology focusing on the automation of repetitive, frequent, voluminous and rule-based tasks. Despite a few practical…
Abstract
Purpose
Robotic process automation (RPA) has recently emerged as a technology focusing on the automation of repetitive, frequent, voluminous and rule-based tasks. Despite a few practical examples that document successful RPA deployments in organizations, evidence of its economic benefits has been mostly anecdotal. The purpose of this paper is to present a step-by-step method to RPA investment appraisal and a business case demonstrating how the steps can be applied to practice.
Design/methodology/approach
The methodology relies on design science research (DSR). The step-by-step method is a design artefact that builds on the mapping of processes and modelling of the associated costs. Due to the longitudinal nature of capital investments, modelling uses discounted cashflow and present value methods. Empirical grounding characteristic to DSR is achieved by field testing the artefact.
Findings
The step-by-step method is comprised of a preparatory step, three modelling steps and a concluding step. The modelling consists of compounding the interest rate, discounting the investment costs and establishing measures for comparison. These steps were applied to seven business processes to be automated by the case company, Estate Blend. The decision to deploy RPA was found to be trivial, not only based on the initial case data, but also based on multiple sensitivity analyses that showed how resistant RPA investments are to changing circumstances.
Practical implications
By following the provided step-by-step method, executives and managers can quantify the costs and benefits of RPA. The developed method enables any organization to directly compare investment alternatives against each other and against the probable status quo where many tasks in organizations are still carried out manually with little to no automation.
Originality/value
The paper addresses a growing new domain in the field of business process management by capitalizing on DSR and modelling-based approaches to RPA investment appraisal.
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Annette Mills, Nelly Todorova and Jing Zhang
Disasters and other emergencies are increasing, with millions of people affected by events like earthquakes, fires and flooding. The use of mobile emergency alert systems (MEAS…
Abstract
Purpose
Disasters and other emergencies are increasing, with millions of people affected by events like earthquakes, fires and flooding. The use of mobile emergency alert systems (MEAS) can improve people’s responses by providing targeted alerts based on location and other personal details. This study aims to understand the factors that influence people’s willingness to share the personal information that is needed to provide context-specific messaging about a threat and protective actions.
Design/methodology/approach
Drawing on protection motivation theory (PMT), this study proposes and tests a model of willingness to use personalised MEAS that incorporates key factors related to an individual’s appraisal of a potential threat (i.e. perceived vulnerability and severity) and coping capacity (i.e. response efficacy and self-efficacy), with deterrents like response cost and privacy concern. This study uses survey data from 226 respondents in New Zealand and SmartPLS to assess the model.
Findings
The results show how willingness to use MEAS is influenced by people’s appraisal of an emergency threat and their perception of how using MEAS would help them to cope effectively. Fear and perceived severity are significant motivators of MEAS use, along with coping appraisal. However, when the negative influences of privacy concern and response cost are strong enough, they can dissuade use, despite knowing the risks.
Originality/value
The study addresses a gap in research on the use of alert systems like MEAS, which require sharing of personal information and continuous engagement such as the real-time disclosure of one’s location. It confirms the significance of factors not studied in prior research, such as privacy concerns, that can dissuade use. This study also extends the application of the PMT in the context of emergency management.
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Hao Chen and Yufei Yuan
Protection motivation theory (PMT) explains that the intention to cope with information security risks is based on informed threat and coping appraisals. However, people cannot…
Abstract
Purpose
Protection motivation theory (PMT) explains that the intention to cope with information security risks is based on informed threat and coping appraisals. However, people cannot always make appropriate assessments due to possible ignorance and cognitive biases. This study proposes a research model that introduces four antecedent factors from ignorance and bias perspectives into the PMT model and empirically tests this model with data from a survey of electronic waste (e-waste) handling.
Design/methodology/approach
The data collected from 356 Chinese samples are analyzed via structural equation modeling (SEM).
Findings
The results revealed that for threat appraisal, optimistic bias leads to a lower perception of risks. However, factual ignorance (lack of knowledge of risks) does not significantly affect the perceived threat. For coping appraisal, practical ignorance (lack of knowledge of coping with risks) leads to low response efficacy and self-efficacy and high perceptions of coping cost, but the illusion of control overestimates response efficacy and self-efficacy.
Originality/value
First, this study addresses a new type of information security problem in e-waste handling. Second, this study extends the PMT model by exploring the roles of ignorance and bias as antecedents. Finally, the authors reinvestigate the basic constructs of PMT to identify how rational threat and coping assessments affect user intentions to cope with data security risks.
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Road transport is an important sector of the economy, however, its negative impacts on the environment, human health and sustainability of potential economic growth are…
Abstract
Road transport is an important sector of the economy, however, its negative impacts on the environment, human health and sustainability of potential economic growth are significant. Transport externalities tend to be neglected within the market process. The damage generated through significant externalities of road transport in Czechia was identified, based on unique data processing, to reach almost 3.5 billion € annually. This chapter presents an overview of internalization taxes and fees, their current rates and generated receipts. If excise duty is disregarded as fundamentally unsuitable for the internalization of externalities, then the receipts from other applied taxes and fees, particularly the road tax, seem to be insufficient. Although economic growth is encouraged, its form is not sustainable in view of the rising phase of the Kuznets curve and the related irreversible environmental impacts.
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Changqing He, Rongrong Teng and Jun Song
This study aims to explore the associations linking employees’ challenge-hindrance appraisals toward artificial intelligence (AI) to service performance while considering the dual…
Abstract
Purpose
This study aims to explore the associations linking employees’ challenge-hindrance appraisals toward artificial intelligence (AI) to service performance while considering the dual mediating roles of job crafting and job insecurity, as well as the moderating role of AI knowledge.
Design/methodology/approach
A survey was administered to a sample of 297 service industry employees. This study examined all the hypotheses with Mplus 8.0.
Findings
This study confirms that challenge appraisal toward AI has an indirect positive influence on service performance via job crafting (motivation process), whereas hindrance appraisal toward AI has an indirect negative influence on service performance via job insecurity (strain process). Meanwhile, AI knowledge, serving as a key personal resource, could strengthen the positive impacts of challenge appraisal toward AI on job crafting and of hindrance appraisal toward AI on job insecurity.
Practical implications
Organizational decision-makers should first survey employees’ appraisals toward AI and then adopt targeted managerial strategies. From the perspective of service industry employees, employees should adopt proactive coping strategies and enrich their knowledge of AI to meet the challenges brought by this technology.
Originality/value
The primary contribution of this study is that we enrich the literature on AI by exploring the dual mediators (i.e. job crafting and job insecurity) through which AI awareness affects service performance. Moreover, this study advances our understanding of when appraisals toward AI influence job outcomes by identifying the moderating role of AI knowledge.
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Ricardo Kaufmann and Norma Pontet-Ubal
The estimation of the burden of a disease is one of the tasks with the longest tradition in health economics, which allows us to know the volume of resources that a country…
Abstract
The estimation of the burden of a disease is one of the tasks with the longest tradition in health economics, which allows us to know the volume of resources that a country allocates to a specific health problem, and to compare countries and diseases. Although the fundamental objective of health systems is not to reduce the cost of the disease, but to improve the health of the population, the studies of burden of disease establish the economic seriousness of the problem, orienting the priorities of action.
Government-funded medical expenditure in Uruguay for the last ten years has tripled in US dollars. The increase in the prevalence of overweight and obesity has contributed to this growth. According to the World Health Organization, Uruguay has the highest growing trend in the prevalence of both overweight and obesity in South America. We have previously estimated that economic burden linked to obesity will be more than US$500 million by 2020, a figure close to 1% of the country’s GDP.
In this study, we tried to generate a measure of value to ascertain the cost of inaction in the fight against obesity and its consequences linked to several non-communicable diseases. The cost of inaction is not defined as the cost of not doing, but as the cost of not implementing the right policies (in this case health prevention policies) at the right time.
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