TY - JOUR
T1 - A case study of the costs of quality
T2 - Water utilities
AU - Banasik, Marcus A.
AU - Beruvides, Mario G.
N1 - Funding Information:
Community Outreach Conservation - Agriculture Conservation - Commercial Conservation - Office of the Director Conservation - Residential Conservation Sect Conserve - Communications Customer Svc Training Desalination EAA Activities Education Outreach Edwards Acquisitions Edwards Aquifer Optimization Program Edwards Groundwater Groundwater Resource Protection Indoor Conservation Administration Infrastructure Planning Dept Instrumentation Maintenance - ASR Outdoor Conservation Administration Planning and Research Quality Control Supervisor Recharge Resource Protection Div Resource Quality Management Dept Safety and Environmental Health Security Source Water and Watershed Education Water Quality (WRAP1) Water Quality (WRAP2) Water Resources - Public Outreach Youth Education
PY - 2012/6/1
Y1 - 2012/6/1
N2 - Cost of Quality has long been applied to manufacturing entities only. This research expands on that effort and applies the COQ methodologies to water utilities. Three water utilities were chosen for the initial study—El Paso, Lubbock, and San Antonio, Texas. A Prevention, Appraisal, and Failure Cost Compendium was developed to assist in categorizing costs. The study used manufacturing meta-analysis COQ percentages as a basis for comparison with water utility organizations. Three water utilities—El Paso Water Utility (EWU), Lubbock Water Utility (LWU), and San Antonio Water System (SAWS), were chosen to be included in this study because they represented three different populations, three different water source combinations, and three different county water usages. Using non-parametric statistics between manufacturing organizations and water utility organizations, the results show that prevention, failure, and total COQ are statistically different, yet appraisal costs are the same. A sensitivity analysis and a Pareto analysis performed on the data resulted in actionable analytics for researchers. We assert that COQ is a useful tool for water utilities to assist in making monetary resource decisions.
AB - Cost of Quality has long been applied to manufacturing entities only. This research expands on that effort and applies the COQ methodologies to water utilities. Three water utilities were chosen for the initial study—El Paso, Lubbock, and San Antonio, Texas. A Prevention, Appraisal, and Failure Cost Compendium was developed to assist in categorizing costs. The study used manufacturing meta-analysis COQ percentages as a basis for comparison with water utility organizations. Three water utilities—El Paso Water Utility (EWU), Lubbock Water Utility (LWU), and San Antonio Water System (SAWS), were chosen to be included in this study because they represented three different populations, three different water source combinations, and three different county water usages. Using non-parametric statistics between manufacturing organizations and water utility organizations, the results show that prevention, failure, and total COQ are statistically different, yet appraisal costs are the same. A sensitivity analysis and a Pareto analysis performed on the data resulted in actionable analytics for researchers. We assert that COQ is a useful tool for water utilities to assist in making monetary resource decisions.
KW - Cost of Quality
KW - Economic Analysis
KW - Opportunity Cost
KW - Water Utilities
UR - http://www.scopus.com/inward/record.url?scp=84864880007&partnerID=8YFLogxK
U2 - 10.1080/10429247.2012.11431932
DO - 10.1080/10429247.2012.11431932
M3 - Article
AN - SCOPUS:84864880007
SN - 1042-9247
VL - 24
SP - 3
EP - 14
JO - EMJ - Engineering Management Journal
JF - EMJ - Engineering Management Journal
IS - 2
ER -