Quality Costing

Quality costs help to show the importance of quality-related activities to management; they demonstrate the cost of non-quality to an organization; they track the causes and effects of the problem, enabling the working out of solutions using quality improvement teams, and then monitoring progress. As a technique in the introduction and development of TQM, quality costing is a powerful tool for enhancing a company's effectiveness.Quality Costing provides pragmatic advice on how to set about introducing and developing a quality costing system and using the data that emerges. This third edition (strengthened by additional data from a range of organizations) provides sound practical guidance on how to define, identify, collect, measure, analyse, report and use quality costs. This established text has proved invaluable to managers and quality professionals, students and academics alike - the new edition ensures its continued position as the leading book in the field.

List of Figures

ix

List of Tables

xi

Preface

xiii

Abbreviations

xvii

Structure of the book

xix

Part I Explaining Quality Costing

The role of quality costing in total quality management

3

(18)

Introduction

3

(1)

What is total quality management?

3

(5)

The evolution of quality management

8

(1)

The importance of quality in a business context

9

(4)

The case for quality costing

13

(6)

Summary

19

(1)

Notes

19

(2)

Quality costing: background

21

(26)

Introduction

21

(1)

What are quality costs?

21

(2)

Quality costs and in-built inefficiencies

23

(2)

Quality costs and delivery performance

25

(1)

A short history of quality costing

26

(5)

Why are quality costs important?

31

(2)

Published quality costs data

33

(5)

Why measure quality costs?

38

(1)

Accounting, accountants and quality costing

39

(4)

Summary

43

(1)

Notes

43

(4)

Definitions of quality costs

47

(20)

Introduction

47

(1)

The importance of definitions

47

(3)

Quality cost categories

50

(5)

Quality cost elements

55

(3)

Difficulties associated with quality cost definitions

58

(4)

Concessions, modifications and engineering changes

62

(1)

Summary

63

(1)

Notes

64

(3)

Collection of quality costs

67

(50)

Introduction

67

(1)

Establishing the objectives for quality cost collection

67

(3)

Available advice on quality cost collection

70

(2)

Various approaches to quality cost collection

72

(27)

Ease of collection and sources of cost data

99

(3)

The level of detail in the costs collected

102

(3)

Accuracy of data

105

(2)

The people involved in quality cost collection

107

(1)

The views of quality managers and accountants

108

(1)

Commitment of senior management

109

(1)

Summary

109

(1)

Notes

110

(1)

Appendix 4A Guidance notes on cost elements of prevention, appraisal and failure model (BS 6143: Part 2, 1990)

111

(6)

Reporting of quality costs

117

(26)

Introduction

117

(1)

Extracting quality costs from existing company systems

117

(3)

Some fundamentals of quality cost reporting

120

(3)

Reporting formats

123

(17)

`Economic cost of quality' models

140

(1)

Summary

141

(1)

Notes

142

(1)

Uses of quality costs

143

(18)

Introduction

143

(1)

Promoting quality as a business parameter

143

(5)

Facilitating performance measures and improvement activities

148

(5)

Planning and control

153

(2)

Motivational purposes

155

(1)

Summary

156

(1)

Notes

156

(5)

Part II Case studies

Case study, company 1

161

(24)

Introduction

161

(2)

Company quality control and accounting systems

163

(1)

Detection and measurement of quality-related costs

163

(11)

Discussion of findings

174

(6)

Presentation and uses of quality-related costs

180

(1)

Overall review and comparison with other data

180

(1)

Miscellaneous points arising from the study

181

(2)

Notes

183

(2)

Case study, company 2

185

(22)

Introduction

185

(2)

Identification of sources of quality costs

187

(1)

Sources of costs identified from systems and procedures

187

(3)

Sources of costs identified from accounts ledgers

190

(2)

Applicability of BS 6143 at Company 2

192

(8)

Discussion of findings

200

(2)

Cost report and comparison with other data

202

(3)

Presentation and uses of cost data

205

(1)

Notes

205

(2)

Case study, company 3

207

(22)

Introduction

207

(1)

Identification of sources of quality costs

208

(1)

Cost sources identified from procedures and systems

208

(2)

Quality cost collection and analysis

210

(10)

Quality cost reporting

220

(3)

Comparison of performance with other published data

223

(3)

Presentation and uses of quality cost information

226

(2)

Notes

228

(1)

Case study, company 4

229

(18)

Introduction

229

(1)

Sources of quality costs

230

(3)

Measurement of quality costs

233

(2)

Comparison of cost reports

235

(3)

Discussion of costs

238

(2)

Quality cost reporting

240

(2)

Uses of quality costs

242

(3)

Notes

245

(2)

Case study, company 5

247

(10)

Introduction

247

(1)

The motivation for total quality management and the approach adopted

247

(4)

Why did the bank undertake a quality costing exercise?

251

(1)

Approach adopted to quality cost collection

252

(2)

Reporting and use of the data

254

(1)

Summary

255

(1)

Notes

255

(2)

Case study, company 6

257

(16)

Introduction

257

(1)

Company background information

257

(1)

The total cost of ownership model concept

258

(2)

Uses of the total cost of ownership model

260

(1)

Development and implementation of the total cost of ownership model

261

(4)

Potential benefits

265

(1)

Summary

266

(1)

Notes

267

(6)

Cost elements of the TCO model

267

(2)

Example of process cost document

269

(4)

Part III Conclusion

Setting-up a quality costing system

273

(8)

Introduction

273

(1)

Quality costing pointers

273

(4)

Quality costing dos and don'ts

277

(2)

Concluding summary

279

(1)

Notes

280

(1)

Index

281

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

FREE SHIPPING

Amazon no longer offers textbook rentals. We do!

Summary

Table of Contents

Supplemental Materials