The use of Process Cost Model (PCM) for measuring quality costs of construction projects: model testing

Abstract

A ‘Process Cost Model (PCM)’ approach has been proposed previously (Aoieong et al., 2002) for measuring the quality costs of construction projects. The PCM is proposed because the traditional models on PAF (prevention, appraisal and failure) quality costs have been found to be unsuitable for the construction industry, although they may be successful in the manufacturing industry. The focus of PCM, unlike PAF model, is no longer on capturing the total quality costs of an entire project but the quality costs of a particular process. It is simple and more feasible to be applied in construction projects and is in line with the ‘process approach’ and ‘continual improvement’ concepts of the latest (year 2000) version of the ISO 9000 quality management system, which is a step closer to Total Quality Management (Aoieong and Tang, 2002). The current paper describes two case studies using the PCM to capture quality costs on two construction projects. The case studies reveal that the PCM is feasible, practicable and easy to use. It is also possible to use the model to achieve ‘continual improvement’ by referencing the quality costs of a particular construction process. The Process Cost Model (PCM) is therefore a better model than the traditional PAF model for application in the construction industry for measuring quality costs.