The approximation of operational quality costs in organizations

Cheng Chu Chiu-Wei, Mario G. Beruvides, James L. Simonton

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The research on Cost of Quality (COQ) is difficult when actual quality costs are collected across different industries. Companies might not want to share their private quality costs data. Therefore, this paper tries to find a possible solution to gathering and analyzing quality costs. To achieve high levels of quality products and services, companies need to hire quality management professionals to achieve and maintain quality outputs and processes. So far, a limited amount of research has been dedicated to investigating the labor cost involved in managing quality. This paper looks at quality related labor expenditures from U.S. Department of Labor. A general method will be established to estimate the approximate operational quality costs. Operational quality costs are summarized and analyzed according to the North American Industry Classification System (NAICS). Manufacturing industries are emphasized to demonstrate the general method using operational quality costs. The results reveal the potential performance based labor related quality costs that are currently affecting organizations. Copyright

Original languageEnglish
Title of host publication30th Annual National Conference of the American Society for Engineering Management 2009, ASEM 2009
Pages721-726
Number of pages6
StatePublished - 2009
Event30th Annual National Conference of the American Society for Engineering Management 2009, ASEM 2009 - Springfield, MO, United States
Duration: Oct 14 2009Oct 17 2009

Publication series

Name30th Annual National Conference of the American Society for Engineering Management 2009, ASEM 2009

Conference

Conference30th Annual National Conference of the American Society for Engineering Management 2009, ASEM 2009
CountryUnited States
CitySpringfield, MO
Period10/14/0910/17/09

Keywords

  • Cost of quality
  • North American industry classification system

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