Abstract
The paper performs a literature review on existing models and methodologies to analyse and identify the cost of quality in manufacturing systems. The review shows that existing accounting models are insufficient to identify quality cost in detail in production processes. Existing models also do not cover the entire production activities and therefore need to be extended over the entire product life cycle. The authors therefore develop a new approach by refining and extending the method of activity-based costing to make it applicable for quality cost identification. The proposed methodology can serve as a building block for a later integration into superior supply chain management systems which allow to trigger continuous quality improvements of entire production networks.
Highlights
In recent years, companies have been forced to review and control tightly their costs
The proposed methodology can serve as a building block for a later integration into superior supply chain management systems which allow to trigger continuous quality improvements of entire production networks
In the German automotive industry, quality standards are set by the German Association of the Automotive Industry (VDA) [2, 3, 4]
Summary
Companies have been forced to review and control tightly their costs. Transferred to the research and development and the operations level, this means that the previously defined target characteristics and features, which are decisive for the functional fulfilment of the product specifications, are not met. The shop floor describes the production facility in which a product is manufactured This means that shop floor management includes all management measures for product and process improvement at the direct point of value creation with the involvement of employees with the aim of fulfilling customer requirements [1,2,3,4,5]. Several studies have examined the measurement of quality costs and the quality level [6,7,8,9,10,11,12] Such management and organizational deficiencies can have an impact of up to 20 % on the company's sales. A 100 % quality level expected by customers will not be achieved, because it is not possible
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