Abstract

[This abstract is based on the author's abstract.]

A Cost-of-Quality (COQ) model divides quality costs into prevention, internal and external failures, and appraisal cost categories. A static COQ model is not an appropriate planning tool because quality planning and improvement activities, changing appraisal requirements, and changing quality expectations prevent it from being so. In the article, passive failure costs, associated with rework and warranty service, and active failure costs, associated with corrective actions, are distinguished. Costs associated with corrective actions are treated conceptually as costs of control, since they lead to a permanent reduction in rates of process defects. Data from an actual case study validate the idea of dynamic cost components. The dynamics introduced over the short term result from strategies initially directed at problem identification and containment. These are followed by serious efforts to find and implement changes in the process to prevent problem recurrence. The case study also validates that the utilization of a classical COQ model is not inconsistent with a modern quality engineering approach.