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Article
Publication date: 16 February 2024

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.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 1 June 2023

Sareh Khazaeli, Mohammad Saeed Jabalameli and Hadi Sahebi

Due to the importance of quality to customers, this study considers criteria of quality and profit and optimizes both in a multi-echelon cold chain of perishable agricultural…

Abstract

Purpose

Due to the importance of quality to customers, this study considers criteria of quality and profit and optimizes both in a multi-echelon cold chain of perishable agricultural products whose quality immediately begins to deteriorate after harvest. The two objectives of the proposed cold chain are to maximize profit and quality. Since postharvest quality loss in the supply chain depends on various decisions and factors, in addition to strategic decisions, the authors consider the temperature setting in refrigerated facilities and transportation vehicles due to the unfixed shelf life of the products which is related to the temperature found by Arrhenius formula.

Design/methodology/approach

The authors use bi-objective mixed-integer nonlinear programming to design a four-echelon supply chain. The authors integrate the supply chain echelons to detect the sources and factors of quality loss. The four echelons include supply, processing, storage and customer. The decisions, including facility location, assigning nodes of each echelon to corresponding nodes from the adjacent echelon, allocation of vehicles to transport the products from farms to wholesalers, processing selection, and temperature setting in refrigerated facilities, are made in an integrated way. Model verification and validation in the case study are done based on three perishable herbal plants.

Findings

The model obtains a 29% profit against a total cost of 71 and 93% of original quality of the crops is maintained, indicating a 7% quality loss. The final quality of 93% is the result of making a US$6m investment in the supply chain, including the procurement of high-quality raw materials; facility establishment; high-speed, high-capacity vehicles; location assignment; processing selection and refrigeration equipment in the storage and transportation systems, helping to maximize both the final quality of the products and the total profit.

Research limitations/implications

The proposed supply chain model should help managers with modeling decisions, especially when it comes to cold chains for agricultural products. The model yields these results – optimal location-allocation decisions for the facilities to minimize distances between the network nodes, which save time and maintain the majority of the products’ original quality; choosing the most appropriate processing method, which reduces the perishability rate; providing high-capacity, high-speed vehicles in the logistics system, which minimizes transportation costs and maximizes the quality; and setting the right temperature in the refrigerated facilities, which mitigates the postharvest decay reaction rate of the products.

Practical implications

Comparison of the results of the present research with those of the traditional chain (obtained through experts) shows that since the designed chain increases the profit as well as the final quality, it has benefits for the main chain stakeholders, which are customers of agricultural products. This study model is expected to have a positive impact on the environment by placing strong emphasis on quality and preventing excessive waste generation and air pollution by imposing a financial penalty on extra demand production.

Social implications

Since profit and quality of the final product are two important factors in all cultures and communities, the proposed supply chain model can be used in any food industry around the world. Applying the proposed model induces growth in local industries and promotes the culture of prioritizing quality in societies.

Originality/value

To the best of the authors’ knowledge, this is the first research on a bi-objective four-echelon (supply, processing, storage and customer) postharvest supply chain for agricultural products including that integrates transportation logistics and considers the deterioration rate of products as a time-dependent variable at different levels of decision-making.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 17 August 2023

Christina Dimitrantzou, Evangelos Psomas and Fotios Vouzas

This study aims at determining the influence of the competitive strategy types and organizational structure dimensions on Cost of Quality (CoQ) in Food and Beverage (F&B) small…

Abstract

Purpose

This study aims at determining the influence of the competitive strategy types and organizational structure dimensions on Cost of Quality (CoQ) in Food and Beverage (F&B) small- and medium-sized enterprises (SMEs).

Design/methodology/approach

A survey questionnaire was sent to F&B companies in Greece and 307 responded positively and fully completed the questionnaire. The research model developed (consisting of the competitive strategy types, the organizational structure dimensions and CoQ) was tested using the exploratory and confirmatory factor analyses and the structural equation modeling (SEM) technique.

Findings

The findings indicated that cost leadership, centralization and formalization influence the CoQ positively and significantly. By contrast, differentiation does not influence CoQ.

Research limitations/implications

The small sample of the responding companies operating in one country, the different F&B sub-sectors, the subjective perceptions of only one representative per company and the cross-sectional nature of the study are the main limitations of the present study.

Practical implications

This paper provides academicians and practitioners with a better understanding of the factors that influence the quality-cost level.

Originality/value

To the best of the authors' knowledge, this is the first study that examines the effect of competitive strategy and organizational structure on CoQ.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 26 March 2024

Gavin Ford and Jonathan Gosling

The construction industry has struggled to deliver schemes on time to budget and right-first-time (RFT). There have been many studies into nonconformance and rework through…

Abstract

Purpose

The construction industry has struggled to deliver schemes on time to budget and right-first-time (RFT). There have been many studies into nonconformance and rework through quantitative research over the years to understand why the industry continues to see similar issues of failure. Some scholars have reported rework figures as high as 12.6% of total contract value, highlighting major concerns of the sustainability of construction projects. Separately, however, there have been few studies that explore and detail the views of industry professions who are caught in the middle of quality issues, to understand their perceptions of where the industry is failing. As such, this paper interrogates qualitative data (open-ended questions) on the topic of nonconformance and rework in construction to understand what industry professionals believe are the causes and suggested improvement areas.

Design/methodology/approach

A qualitative approach is adopted for this research. An industry survey consisting of seven open-ended questions is presented to two professional working groups within a Tier 1 contractor, and outputs are analysed using statistic software (NVivo 12) to identify prominent themes for discussion. Inductive analysis is undertaken to gain further insight into responses to yield recurrent areas for continuous improvement.

Findings

Qualitative analysis of the survey reveals a persistent prioritisation of cost and programme over quality management in construction project. Furthermore, feedback from construction professionals present a number of improvement areas that must be addressed to improve quality. These include increased training and competency investment, overhauling quality behaviours, providing greater quality leadership direction and reshaping the way clients govern schemes.

Research limitations/implications

There are limitations to this paper that require noting. Firstly, the survey was conducted within one principal contractor with varying levels of knowledge across multiple sectors. Secondly, the case study was from one major highways scheme; therefore, the generalisability of the findings is limited. It is suggested that a similar exercise is undertaken in other sectors to uncover similar improvement avenues.

Practical implications

The implications of this study calls for quality to be re-evaluated at project, company, sector and government levels to overhaul how quality is delivered. Furthermore, the paper identifies critical learning outcomes for the construction sector to take forward, including the need to reassess projects to ensure they are appropriately equip with competent personnel under a vetted, progressive training programme, share collaborative behaviours that value quality delivery on an equal standing to safety, programme and cost and tackle the inappropriate resource dilemmas projects finding themselves in through clear tendering and accurate planning. In addition, before making erratic decisions, projects must assess the risk profiling of proceed without approved design details and include the client in the decision-making process. Moreover, the findings call for a greater collaborative environment between the construction team and quality management department, rather than being seen as obstructive (i.e. compliance based policing). All of these must be driven by leadership to overhaul the way quality is managed on schemes. The findings demonstrate the importance and impact from open-ended survey response data studies to enhance quantitative outcomes and help provide strengthened proposals of improvement.

Originality/value

This paper addresses the highly sensitive area of quality failure outcomes and interrogates them via an industry survey within a major UK contractor for feedback. Unique insights are gained into how industry professionals perceive quality in construction. From previous research, this has been largely missing and offers a valuable addition in understanding the “quality status quo” from those delivering schemes.

Details

International Journal of Quality & Reliability Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 7 April 2023

Suyuan Wang, Huaming Song, Hongfu Huang and Qiang Huang

This paper explores how the manufacturer’s strategic choice (acquisition or investment) impacts product quality in a supply chain comprising two complementary suppliers and a…

Abstract

Purpose

This paper explores how the manufacturer’s strategic choice (acquisition or investment) impacts product quality in a supply chain comprising two complementary suppliers and a common manufacturer.

Design/methodology/approach

The manufacturer faces six strategic choices to improve product quality: acquiring or investing in the high-capable supplier, the low-capable supplier, or both. As the Stackelberg leader, the manufacturer determines which strategy is adopted, while suppliers are separately responsible for components’ quality and wholesale prices. The authors use game theory and calculate the model with Mathematica.

Findings

The authors develop analytical models to analyze how acquisition costs, investment proportions, component importance and quality improvement coefficients influence decision-makers. The results show that the highest quality may not benefit the manufacturer. Investing in or acquiring a low-capable supplier is better than a high-capable supplier under certain conditions. If the gaps between two suppliers’ quality improvement coefficients and the importance of two components are dramatic, the manufacturer should choose an investment strategy.

Originality/value

This study contributes to the complementary supply chain management by comparing two kinds of strategies-acquisition and investment, with a high-capable supplier and a low-capable supplier.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 28 December 2023

Dongmin Kong, Shasha Liu and Rui Shen

On the basis of labor economics theories, this study examines how adjustment in human capital accounts for labor cost stickiness.

Abstract

Purpose

On the basis of labor economics theories, this study examines how adjustment in human capital accounts for labor cost stickiness.

Design/methodology/approach

This study makes use of employee education level as a measure of the quality of human capital and relies on data from Chinese public firms to conduct the empirical test. This study focuses on two important components of labor cost changes: one corresponding to the adjustment in the number of employees (capacity adjustment) and another corresponding to the adjustment in the mix of employee education levels (quality adjustment).

Findings

This study reveals that labor cost changes driven by the adjustment of employee education level are sticky. This stickiness cannot be explained by the standard adjustment cost theory. This further shows that firms that actively adjust their employee quality during downturns experience improved future performance. The findings are robust to alternative measures and specifications.

Originality/value

This study provides new evidence for and insights into the cost behavior literature. Previous studies treat input resources in a homogenous way and focus on the effect of capacity adjustment. This study considers the heterogeneity of resources and examines three dimensions of salary cost adjustment: capacity, structure, and unit cost. In line with the economic theory of sticky costs proposed by Banker et al. (2013a), the study’s evidence sheds light on the additional underlying economic mechanisms driving cost stickiness behavior. Specifically, managers asymmetrically adjust both employee structure and average salaries, in addition to employee number. This study also adds to the existing knowledge of the consequences of managers' actions regarding cost behavior.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 3 January 2023

Simon Wyke, Søren Munch Lindhard and Jesper Kranker Larsen

Cost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as…

Abstract

Purpose

Cost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as identified in previous research. This has led to a need for better understanding how factors affecting cost and time overruns on public construction projects can be managed more efficiently. The purpose of this paper is to address these issues.

Design/methodology/approach

In this study 26 factors affecting cost and time overruns on construction projects were identified, through qualitative interviews with project managers from Danish governmental agencies and through a literature review. Through principal component analyses the 26 factors were subsequently narrowed down to four primary latent factors.

Findings

The identified four latent factors affecting cost and time overruns on public construction projects were lack of quality management, lack of project pre-planning, lack of user management and lack of project management.

Originality/value

Previous research has focussed on increasing knowledge by identifying and ranking factors affecting time and cost performance. This has led to the identification of an overwhelming number of factors to use for managing construction projects. The present research reduced the number of factors by clustering them into key latent factors responsible for most of the deviation in performance, narrowing the scope of construction cost and time management into a few tangible key focus areas. This supports and improves fast decision-making that is necessary in a changeable environment such as construction.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 14 November 2023

Fan Ding, Zhangping Lu and Jingxian Chen

Contract Manufacturers (CM, factory) can cultivate factory brand products by imitating Original Equipment Manufacturers' (OEM, brand owner) National Brand products, and compete…

66

Abstract

Purpose

Contract Manufacturers (CM, factory) can cultivate factory brand products by imitating Original Equipment Manufacturers' (OEM, brand owner) National Brand products, and compete with OEM through the online retailer, that is, factory encroachment. In practice, few consumers can identify the quality of those two products in the online market. Implementing blockchain technology (BTI) can help all consumers identify product quality but may change the operation decisions and incur implementation costs. This study aims to explore how will the BTI strategies affect participants' operation performance under the factory encroachment and delve into the decisions regarding NB product quality and CM encroachment.

Design/methodology/approach

This study constructs a three-level outsourcing supply chain comprising one contract manufacturer (CM, factory), one original equipment manufacturer (OEM) and one online retailer. By utilizing the Stackelberg game, the authors first compared the results between two strategic decisions of BTI and no-BTI by online retailers under the factory encroachment scenario. Then, the NB product quality decision and the CM's encroachment decision are also investigated.

Findings

BTI strategy can benefit all participants (triple win), which both occurs in exogenous and endogenous quality cases, and the triple win area will expand (shrink) as the BTI cost decreases (increases). In addition, the OEM will improve product quality to confront competition from the CM, and the OEM may not always benefit from the BTI, it depends on the maturity of the market. Interestingly, BTI could improve the consumer surplus when the proportion of novice consumers is low. Finally, this study also investigates the extended case that CM always encroaches into the market whether the online retailer choose BTI or not, which hurts OEM's profit and decreases the product quality.

Originality/value

This study sheds light on the strategic decisions of online retailers' BTI regarding supply chain members' profits, consumer surplus and social welfare under factory encroachment. It also demonstrates that the BTI strategy, under different quality decisions (endogenous and exogenous), can be more profitable for chain members and consumers.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 23 February 2024

Evangelia Panagiotidou, Panos T. Chountalas, Anastasios Ι. Magoutas and Fotis C. Kitsios

This study aims to dissect the multifaceted impact of ISO/IEC 17025 accreditation, specifically within civil engineering testing and calibration laboratories. To achieve this, it…

Abstract

Purpose

This study aims to dissect the multifaceted impact of ISO/IEC 17025 accreditation, specifically within civil engineering testing and calibration laboratories. To achieve this, it intends to explore several key objectives: identifying the prominent benefits of accreditation to laboratory performance, understanding the advantages conferred through participation in proficiency testing schemes, assessing the role of accreditation in enhancing laboratory competitiveness, examining the primary challenges encountered during the accreditation process, investigating any discernible adverse effects of accreditation on laboratory performance and evaluating whether the financial cost of accreditation justifies the resultant profitability.

Design/methodology/approach

This study employs a qualitative approach through semi-structured interviews with 23 industry professionals—including technical managers, quality managers, external auditors and clients. Thematic analysis, guided by Braun and Clarke’s six-stage paradigm, was utilized to interpret the data, ensuring a comprehensive understanding of the accreditation’s impact.

Findings

Findings reveal that accreditation significantly enhances operational processes, fosters quality awareness and facilitates continuous improvement, contributing to greater client satisfaction. In addition, standardized operations and rigorous quality controls further result in enhanced performance metrics, such as staff capability and measurement accuracy. However, the study also uncovers the challenges of accreditation, including high resource costs and bureaucratic hurdles that can inhibit innovation and slow routine operations. Importantly, the research underscores that the impact of accreditation on profitability is not universal, but contingent upon various factors like sector-specific regulations and market demand. The study also highlights sector-specific variations in the role of accreditation as a marketing tool and differing perceptions of its value among clients. It further emphasizes the psychological stress of high-stakes evaluations during audits.

Originality/value

This study represents the first in-depth investigation into the impact of ISO/IEC 17025 accreditation on civil engineering testing and calibration laboratories, directly contributing to the enhancement of their quality and operational standards. Providing actionable insights for laboratories, it underscores the importance of weighing accreditation costs and benefits and the necessity for a tailored approach to the unique market and regulatory landscapes they operate in.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 24 August 2023

Jiju Antony, Vikas Swarnakar, Michael Sony, Olivia McDermott and Raja Jayaraman

This study aims to investigate how early and late adopters of Quality 4.0 (Q4.0) differ in terms of organizational performance.

Abstract

Purpose

This study aims to investigate how early and late adopters of Quality 4.0 (Q4.0) differ in terms of organizational performance.

Design/methodology/approach

The authors employed a grounded theory approach for interviewing 15 senior managers from diverse organizational contexts throughout the globe as part of their qualitative research methodology.

Findings

The research's findings were analyzed based on four types of performance: operational, financial, environmental and social. It was clear that early adopters of Q4.0 were sustaining superior performance in quality over time, even though their investment was significantly higher than that of late adopters. From a financial viewpoint, it was evident that early adopters had a competitive edge over their rivals compared to late adopters. Late adopters have utilized the notion of the circular economy (CE) more effectively than many early adopters in the context of environmental performance in order to establish a green economy and sustainable development.

Research limitations/implications

Although the results of the interview indicate that Q4.0 is having some positive effects on social performance, in the authors' view, it is still least understood from an empirical standpoint.

Originality/value

The study's findings assist organizations in comprehending the performance differences between Q4.0 early adopters and late adopters.

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