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1 – 10 of over 14000The purpose of the study is to examine the research problem that represents an attempt to approximate the importance of quality costing in managing a modern enterprise using the…
Abstract
Purpose
The purpose of the study is to examine the research problem that represents an attempt to approximate the importance of quality costing in managing a modern enterprise using the selected enterprises from small and medium-sized enterprises (SMEs) in Poland.
Design/methodology/approach
The primary goal of the research is a need to acquire knowledge about the use of quality cost accounts in enterprises operating in Poland. The research has been conducted in the SMEs of production and services. From October 2018 to December 2018, survey-based research was carried out in the selected SMEs of production and service in Poland. The targeted participants of the study are from the medium-sized enterprises, employing 50–250 people.
Findings
The pilot studies conducted in companies indicate that modern enterprises are focused on quality. Many enterprises declare to be continuously improving quality system and quality costing. However, generally, these are large companies that have implemented ISO standards, often part of international corporations. The survey result of the study shows that medium-sized enterprises still make little use of modern cost accounting variants. Based on the study, only 9.75% (39 enterprises) from a representative group of 400 companies from the sectors of manufacturing, services and production as well as service companies apply quality costing. Some of the other enterprises are only taking measures to implement quality cost accounting.
Research limitations/implications
The research has been conducted in randomly selected SMEs in the form of a questionnaire interview. In order to further analyze the construction of quality cost management (QCM) systems and the use of information from QCM by enterprises, case study method should be used more widely.
Practical implications
The results of the study provide useful help for companies that are quality-oriented and want to implement quality costing. The survey has been conducted in 400 enterprises, and the survey results of considered SMEs reveal the most important aspects of the application of quality costing.
Originality/value
The questionnaire used, the answers provided and the resulting conclusions fill the identified research gap. In the author's opinion, findings of research are relevant and useful, not only for accounting practice but also for theory. They show that although TQM and quality costing have been very popular in the literature since the 1990s, the degree of application of quality costing in practice (except for large, often international companies) is too low. So, the suitability of QCM in managing a modern enterprise from the SMEs should be promoted.
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Elena Stefana, Paola Cocca, Federico Fantori, Filippo Marciano and Alessandro Marini
This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.
Abstract
Purpose
This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.
Design/methodology/approach
The authors conducted a literature review about the studies focusing on approaches combining OEE with monetary units and/or resource issues. The authors developed an approach based on Overall Equipment Cost Loss (OECL), introducing a component for the production resource consumption of a machine. A real case study about a smart multicenter three-spindle machine is used to test the applicability of the approach.
Findings
The paper proposes Resource Overall Equipment Cost Loss (ROECL), i.e. a new KPI expressed in monetary units that represents the total cost of losses (including production resource ones) caused by inefficiencies and deviations of the machine or equipment from its optimal operating status occurring over a specific time period. ROECL enables to quantify the variation of the product cost occurring when a machine or equipment changes its health status and to determine the actual product cost for a given production order. In the analysed case study, the most critical production orders showed an actual production cost about 60% higher than the minimal cost possible under the most efficient operating conditions.
Originality/value
The proposed approach may support both production and cost accounting managers during the identification of areas requiring attention and representing opportunities for improvement in terms of availability, performance, quality, and resource losses.
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The purpose of this paper is to analyse the effectiveness of a quality improvement method in driving innovation in the public sector. The study expands on the concept of…
Abstract
Purpose
The purpose of this paper is to analyse the effectiveness of a quality improvement method in driving innovation in the public sector. The study expands on the concept of innovation and analyses the types and usefulness of the innovations observed.
Design/methodology/approach
The study utilizes an action research approach. The aim of the quality improvement method introduced is to generate innovations enhancing efficiency. An interventionist research method is required to produce the findings. Data collection methods include a preliminary question sheet, interview, workshops, observation and the examination of other material concerning the case organization.
Findings
The study supports the notion that innovations created with a quality improvement method can be more oriented towards process improvement, particularly in the public sector. Further, when the method enables professionals from different functions to participate in the process, the innovations created can be more comprehensively designed. Innovations can be classified according to their degree of novelty, type, resource consumption and the projected outcome. A project follow-up makes it possible to compare the projected outcome of the innovation against its actual outcome.
Practical implications
The method applied could be a viable option for practitioners considering public sector quality improvement and innovation capacity building. The paper provides guidelines for prioritizing innovations in terms of their resource consumption and usefulness.
Originality/value
Integrating quality improvement with innovation generation as a potential efficiency source for public-sector organizations has received relatively little research attention. Further, the paper provides a categorization for innovations in the public sector that provides guidelines for prioritizing innovations.
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Justyna Dobroszek, Paulo Reis Mourão and Maciej Urbaniak
This paper aims to identify purchasing-related costs through the prism of transaction costs and costs of purchasing management activity.
Abstract
Purpose
This paper aims to identify purchasing-related costs through the prism of transaction costs and costs of purchasing management activity.
Design/methodology/approach
The authors conducted a survey among 150 medium and large manufacturing companies in the chemical, automotive and electromechanical industries operating in Central and Eastern European countries. The collected data were analyzed using confirmatory factor analysis.
Findings
The studied companies carry out an integrated purchasing-related cost system. The authors found a statistical significance of the covariances between the pretransaction, transaction and post-transaction costs. In addition, costs that are of particular importance in long-term purchasing transactions were identified. Moreover, the authors identified the costs of quality and support actions as the most significant.
Practical implications
This research details the discussion of costs with consideration for the insights of managers of medium-sized and large companies.
Originality/value
The paper contributes to the knowledge of purchasing-related costs through the lens of the total cost of ownership that influences the purchasing management and the decisions within the buyer-supplier relationship.
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– The purpose of this paper is to examine the success of activity-based costing (ABC) implementation by confirmatory factor analysis of ISO 9000 certified companies in Thailand.
Abstract
Purpose
The purpose of this paper is to examine the success of activity-based costing (ABC) implementation by confirmatory factor analysis of ISO 9000 certified companies in Thailand.
Design/methodology/approach
A structured questionnaire was used to collect data from key participants, accountant managers in ISO 9000 certified companies.
Findings
The study confirmed the six constructs for the sample of 102 key participants. The results indicated that ABC implementation success in the context of ISO 9000 certified companies in Thailand consists of upper-management support, ABC system training, non-accounting ownership, links to quality initiative, adequate resources, and links to performance evaluation.
Originality/value
The findings have significant implications for ISO 9000 certified companies which intend to adopt or implement ABC. Past findings on ABC implementation success have a small-sample size so they are of limited usefulness. This research has a larger sample size and more carefully chosen participants and so the generalizations are more acceptable.
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Moses Muhwezi, Henry Mutebi, Samuel Ssekajja Mayanja, Benjamin Tukamuhabwa, Sheila Namagembe and Robert Kalema
Procuring relief products and services is a challenging process for humanitarian organizations (HOs), yet it accounts for approximately 65% of relief operations’ costs (Moshtari…
Abstract
Purpose
Procuring relief products and services is a challenging process for humanitarian organizations (HOs), yet it accounts for approximately 65% of relief operations’ costs (Moshtari et al., 2021). This paper aims to examine how procurement internal controls, materials and purchasing procedure standardization influence information integration and procurement performance.
Design/methodology/approach
In this study, partial least square structural equation models and multigroup analysis were used to analyze data collected from 170 HOs.
Findings
Procurement internal controls and material and purchasing procedure standardization fully mediate between information integration and procurement performance.
Research limitations/implications
The study focuses only on HOs. Since humanitarian procurement projects take place over a period of several years, it is difficult to capture the long-term effects of information integration, procurement internal controls, material and purchasing procedure standardization and procurement performance. In this regard, a longitudinal study could be undertaken, provided that the required resources are available.
Practical implications
Procurement managers should implement information integration practices within acceptable procurement internal controls and standardize material and purchasing procedures to boost procurement performance.
Originality/value
By integrating information through procurement internal controls and standardizing material and purchasing procedures, procurement performance in a humanitarian setting can be systematically optimized.
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AbdulLateef Olanrewaju and Hui Jing Alice Lee
Poor quality in building projects is high and increasing. Poor quality can increase the cost of a building by up to more than 50% and can delay a project by up to 50%. This…
Abstract
Purpose
Poor quality in building projects is high and increasing. Poor quality can increase the cost of a building by up to more than 50% and can delay a project by up to 50%. This research investigated the poor quality of building elements/components.
Design/methodology/approach
The site operatives were requested to rate the frequency of poor quality in 25 building elements/components. The frequencies of the poor quality were scored on a five-point Likert scale, ranging from least often to extremely often. The survey forms were administered to construction site operatives by hand delivery.
Findings
The data revealed that poor quality occurred in more than 80% of the building projects completed. Approximately 40% of the cost of a building project is attributed to poor quality. In total, 70% of the respondents measured the poor quality of building elements as being high and frequent. The size and frequency of poor quality are higher in concrete, plaster, brick, foundations and roof trusses.
Practical implications
The research findings would help to reduce claims, disputes, maintenance costs and waste on sites.
Originality/value
This research provides fresh information on poor quality in building projects and provides a systemic process for anticipating poor quality in building projects. The findings also provide an option to increase maintenance span and a means to reduce claims and disputes in the construction sector.
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Mary Margaret Crowdle, Olivia McDermott and Anna Trubetskaya
This study aimed to bridge the gap between the financial measurement of process improvement ideas and Lean Six Sigma measurements. It was required to increase employee engagement…
Abstract
Purpose
This study aimed to bridge the gap between the financial measurement of process improvement ideas and Lean Six Sigma measurements. It was required to increase employee engagement in process improvement initiatives.
Design/methodology/approach
Through both a practical and theoretical application of the Design for Lean Six Sigma methodology, the researcher was able to design a process and a benefit measuring methodology that was acceptable by finance and aligns with the benefits expected from the elimination of the Lean wastes.
Findings
The project found that benefit measurement methodology is not understood by most employees, which leads to a lack of engagement in working on improvements. The result of the study was a model for employees to identify and quantify these benefits. This has resulted in a model for cost-benefit analysis aligning financial costs with non-value add waste costs and cost of poor-quality costs resulting in increased process improvement ideas and activity.
Research limitations/implications
While this study was limited to one company, applying this methodology could benefit any company experiencing the same difficulties.
Originality/value
This is one of the first studies to try and cost the benefits of LSS projects both from an organisational and generic viewpoint.
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