A CONTINUAL IMPROVEMENT COST OF QUALITY MODEL FOR SERVICES

Abstract

ABSTRACT A continual improvement cost of quality (CICOQ) model for services is developed. Before developing the model, the main potential targets of continual improvement efforts in any service organization are presented, explained, and diagrammatically illustrated. The purpose of this is to assist service organizations in identifying and selecting the next and most effectual target of improvement at the end of each continual improvement cycle. The steps of the PDSA cycle and their corresponding action items are also presented. Also presented are the quality management tools that can be utilized when implementing some of the action items. Additionally, the major differences among the action items of some of the PDSA cycle for services and the PDSA cycle for manufacturing are highlighted. Furthermore, our PDSA cost items are presented and classified into Prevention-Appraisal-Failure (PAF) categories. Finally, based on the PAF classification, our model construction process and CICOQ model for services are presented. Unlike the quality-level axis of the COQ and CICOQ models for manufacturing, which follow the ratio scale format, the quality-level axis of our CICOQ model for services follows the ordinal scale format. This is due to the intangibility of services and the tangibility of products. To the best of our knowledge, the model is the first CICOQ model ever developed for planning and implementing continual improvement programmes in services and for assessing, managing, monitoring, and controlling quality-related costs in service organizations. Keywords Cost item, customer benefit package, PAF classification, PDSA cycle for services, quality levels, service delivery system.