Prevention Appraisal Failure Research Articles

Towards estimating Cost of Quality in supply chains

After focusing on Cost of Quality (COQ) at all levels within their internal operations, companies need to consider the supply chain upstream as a first step towards addressing COQ-related issues across their supply chains. This paper is a first step in this direction. In this preliminary study, we determine COQ at selected third-party contract manufacturing sites of a world-leading research-based pharmaceutical company in India. Data for the year 2005–2006 were collected using the Traditional Method, the Defect Document Method, the Time and Attendance Method and the Assessment Method through interviews with internal customers, and check-sheets at the contract sites. Various quality cost elements were identified and categorized under prevention, appraisal, internal failures and external failures. We estimate quality costs in monetary terms as per PAF (Prevention-Appraisal-Failure) model and use standard DMAIC (Define-Measure-Analyse-Improve-Check) methodology for analysis. We identify significant COQ drivers in this healthcare supply chain and suggest measures to address them. Finally, we suggest directions for future research.

Quality improvement in construction by using a Vandermonde interpolation technique

Cost and quality are considered as the two most important elements in all construction activities. However, the quality of products or services does not focus only on their ultimate delivery, but also on the quality of the whole business model. Prevention–appraisal–failure (PAF) modelling is the most commonly adopted methodology to assess the quality performance of the construction organization. However, it cannot successfully show the correlation between prevention, appraisal, and failure costs, hence, it is difficult to determine the optimal point among these costs. A case study is proposed in this paper by presenting activities of a hydro-seeding company. Quality management data of the company are also attached and analysed by using a Vandermonde interpolation technique. This new method clearly shows an optimal point of the total cost which is a summation of prevention, appraisal and failure costs. Comparisons with the PAF modelling of the data are made. Data interpolation can also be used to thoroughly study the company’s performance in terms of investment and managing its resources.

Manufacturing disruption costs due to quality loss

PurposeMany authors have suggested that disruption and associated costs result from poor quality performance in manufacturing. The purpose of this paper is to define and quantify the disruption costs associated with a simple manufacturing scenario using a simulation approach.Design/methodology/approachA manufacturing cell incorporating inspection and rework was simulated, and a validation exercise carried out. Using results from the simulation study, the authors then formulate the concept of a cost category for disruption cost, which is compatible with the traditional prevention‐appraisal‐failure (PAF) model for quality costs.FindingsComparative graphs of disruption costs and PAF costs elements are presented. The simulated disruption cost is compared with these traditional costs categories, and found to represent a significant additional cost at higher levels of non‐conformance.Research limitations/implicationsThe results presented in this paper are derived from a discrete‐event simulation exercise, using a model of a simplified generic manufacturing cell. They are believed to be indicative of costs that would occur in practical situations, but are not validated with empirical data. Further work would include such validation.Practical implicationsThis is a theoretical paper, which attempts to extend a useful and well established cost model that has been widely accepted in industry.Originality/valueThe originality of this paper lies in the definition of the concept of disruption cost, as a separate category of quality cost. The simulation work indicates the potential size and behaviour of the disruption cost, compared with the traditional PAF costs categories.

Using a knowledge management approach to support quality costing

PurposeThe purpose of this article is to examine the difficulties associated with quality costing and propose a solution based upon the use of knowledge management techniques.Design/methodology/approachA widely available software tool is used to create a quality costing ontology based upon the prevention appraisal failure classification of quality costs. This ontology is used for the collection, processing, sharing and use of quality cost‐related knowledge. The ontology was evaluated using case study data and compared with conventional approaches to quality costing.FindingsThe quality costing ontology is easier and more efficient than conventional quality costing methods. It has greater capability in terms of the analysis and use of quality costing knowledge and overcomes the barriers to quality costing due to poor understanding and awareness.Research limitations/implicationsThe quality costing ontology provides a platform for researchers to investigate quality cost behaviour within a well‐structured environment. The use of alternative classifications to prevention appraisal failure in the ontology need to be investigated further.Practical implicationsTraditionally, training and education have been used to rectify poor understanding and awareness of quality costs but with limited success. The quality cost ontology provides an alternative solution that uses knowledge management (KM) technology and is based on information systems.Originality/valueThe authors could find no research or published paper that has discussed the role of KM in quality costing.

KALİTE MALİYETLERİ VE MUHASEBELEŞTİRİLMESİ

The purpose of this paper is to present the cost of quality and its accounting. Many companies in the world gradually promote quality as the central customer value and regard it as a key concept of company strategy in order to achieve the competitive edge. COQ information can be used to indicate major opportunities for corrective action and to provide incentives for quality improvement. The quality costs, can be classified as prevention-appraisal-failure (PAF). The PAF scheme has been almost universally accepted for quality costing. Quality costs can also be used as part of the strategic business plan. This obviously requires a reporting system. Generally it is not easy to extract quality costs information, from the existing uniform accounting system. The use of the 8th code of account will be more appropriate.

On measuring cost of quality dimensions: An exploratory study in the People's Republic of China

This study designed new quality scales to measure 2 prevention–appraisal–failure constructs, (1) product quality's strategic importance construct and (2) nonfinancial/financial disclosure constructs. Three of these scales exhibited consistently uniform dimensionality results, loading patterns, reliabilities, and convergent/divergent validity. Instead of relying on only 1 sample and 1 extraction method this study's results used 3 samples and 2 extraction methods. First, exploratory factor analysis was used, and results were compared against those produced by a nonlinear principal component technique rescaling the data as ordinal. The use of multiple samples and multiple extraction represented an effort to produce robust measurement results independent of a single sample's and a single extraction technique's characteristics.

Role of government in HACCP audit: a Cuban perspective

Since 1992 the Ministry of Fishery Industry (MIP) through its Quality Assurance Directorate (DAC) began HACCP implementation works as a basis of its Quality Management System, meeting in this way requirements of its major importers and tailoring to changes in inspection and quality control activities that were taking part worldwide. According to the Minister's Resolution No. 344/1996, HACCP is mandatory for all activities carried out by all entities of MIP, whose activity is related to the manufacturing of fish products from catching operations to its placing in the market. HACCP assessment in fishery establishment is performed in different ways: • Submission of HACCP-based Quality Assurance Program (QAP) to DAC for validation. This draft of QAP is revised and returned with suggestions and remarks for its redrafting and new submission. • Supervisions performed by DAC and National Fishery Inspection Office (ONIP) specialists to end products, manufacturing process' stages and facilities to verify the compliance of regulations, procedures, cleaning and sanitizing procedures and quality specifications standards. • Verifications by means of microbiological, physical, chemical and sensory testing to end products at the reference laboratory requested by DAC • Cost/profit assessment of HACCP implementation in fishery establishments with the utilization of Prevention–Appraisal–Failure Model (PAF), according to a procedure developed at the `FAO's Economical Engineering Workshop applied to Fishery Industry, March 1997'. • As on January 1998, regulatory audits to HACCP-based QAPs began to be performed in fishery establishments, verifying compliance of applicable documentation (Quality Assurance Programs; Cleaning and Sanitizing Procedures, Working Operational Procedures, and so forth) using the `General Procedure for HACCP Audit's performance in fishery establishments' with a group of auditors made up by DAC specialists and ONIP officer inspectors. For the development of these activities in force up to date, we relied on the collaboration and consultancy of FAO/DANIDA GCP/INT/609/DEN Project in national courses, exchange of experience exchange and training with Inspection and Quality Assurance Bodies of other countries and as a multiplying effect of these activities, the consultancy and training carried out by experts from DAC of MIP to inspectors and industry's technical staff.