Cost of Quality (COQ) implementaion Methodology:A case study in Medium Sized Manufacturing Enterprise

International Journal of Industrial Engineering

© 2016 by SSRG - IJIE Journal

Volume 3 Issue 2

Year of Publication : 2016

Authors : Sanjay G. Mantri and Santosh B. Jaju

10.14445/23499362/IJIE-V3I4P106

How to Cite?

Sanjay G. Mantri and Santosh B. Jaju, "Cost of Quality (COQ) implementaion Methodology:A case study in Medium Sized Manufacturing Enterprise," SSRG International Journal of Industrial Engineering, vol. 3,  no. 2, pp. 22-27, 2016. Crossref, https://doi.org/10.14445/23499362/IJIE-V3I4P106

Abstract:

Presently, the greatest challenges faced by the Indian manufacturing enterprises are global competition, higher focus on quality from customer side and increasing cost of manufacturing due to inflationary pressures from economy in that order. These challenges are partially overcome by adopting advanced technology and following latest trends in manufacturing management. To overcome the cost pressure industries try to tap different cost reducing avenues. In search of these, one of the options, which was not popular till recently, is being considered now. The option is to identify measure, analyze and reduce the “Cost of quality “(COQ). Evolution of cost of quality studies and COQ practices started nearly six decades ago. Today quality costing is essential part of every modern enterprise’s quality plan. The present study focuses on suitable methodology for implementation of COQ. The motivation of study is to enable development of a sound quality cost management system (QCMS) for varied sizes and types of enterprises working in continuously advancing manufacturing environment. The intended QCMS refers to the practices, policies and procedures followed by an enterprise that relates to collecting, measuring and classifying quality costs data. In addition it should work in tandem with accounting system employed by organization for selecting, using and maintaining the quality related financial matrices.Paper reviews the present state of art of COQ practices reported in literature and industry with more emphasis on manufacturing industry in India. Based on the information obtained a methodology for COQ implementation is devised and illustrated using a case study.

Keywords:

Cost of quality (COQ), methodology for coq implementations, medium sized manufacturing enterprise.

References:

[1] D. Mishra, T. Mishra, R.P. Mohanty,Quality Management Practices And Product Quality Outcome In Indian Manufacturing Industry: A Case Study, Interscience MR, Vol.1 Issue 1,2008 pp 23 to 30.
[2] Juran, J.M. & Gryna, F.M. (1988) Quality Control Handbook, 4th edn (New York, McGraw-Hill).
[3] Jack Campanella, editor, "Principles of Quality Costs; Principles, Implementation, and Use," (1999, Quality Press, American Society for Quality)
[4] Arvind Chopra, Dixit Garg ,“Cost of quality practices among Indian industries”, International Journal for Quality research, Short Scientific Paper (1.03), Vol.x, No. x, 2011, pp 505- 510
[5] Darshak A. Desai (2008): Cost of quality in small- and medium-sized enterprises: case of an Indian engineering company, Production Planning & Control: The Management of Operations, 19:1, 25-34
[6] S. B. Jaju, R. P. Mohanty & R. R. Lakhe (2009): Towards managing quality cost:A case study, Total Quality Management & Business Excellence, 20:10, 1075-1094
[7] Arvind Chopra, Dixit Garg,” Integrated simple model for implementing CoQ program”, International Journal of Management & Business Studies, Vol. 1, Issue 3, September 2011, pp 57-60
[8] Rajiv Kumar Sharma, Dinesh Kumar & Pradeep Kumar, “ A framework to implement QCS through process cost modeling”, The TQM Journal, Vol. 19, Issue 1, 2007, pp. 18- 36
[9] Mohandas V.P., Sankara Raman Sankaranarayanan,” Cost of quality analysis: driving bottom line performance” International Journal of Strategic Cost Management, Vol. 3, No. 2,winter 2008, pp 1-8.
[10] Mantri S.G., Jaju S.B.," COQ Practices in Indian Manufacturing Enterprises: An overview”, 3rd International Conference on Production and Industrial Engineering CPIE- 2013,pp 1400-1405