Journal of Quality Engineering and Management

Provide a method to calculate the hidden costs and quality opportunities with the approach of harm to the goodwill of customers and the brand of the organization

Document Type : Original Article

Authors

Mahdi Karbasian
maryam ganji
mohsen cheshmberah

a

https://doi.org/10.48313/jqem.2021.136193
Abstract
Today hidden costs and quality opportunities cost are two parameters not seriously considered in most organizations.in today's competitive world, loss of customers imposes important and significant costs on the organizations. therefor  in this study, in order to reduce the cost of total quality we present a method to calculate the cost of damage to customers ' goodwill and the cost of damage to the organization brand .In working out the cost of damage to the goodwill of customers, first the quality requirements as well as the weight assigned to each requirement is calculated. Having figured out the costs related to the discontented customers, we have embarked on finding out the loss rate damage to the customers' good faith and eventually the cost of damage to the customers' good will. In calculating the damage costs to the organization's brand, from among available models, the Acker model has been utilized which serves our purpose. Following the procedures given in the latter model, the parameters generating costs are identified and then the damage costs to the organization's brand is worked out. finally, the findings indicate that dissatisfied customers inflict the most damage on the organization. Finally, the methods and procedures suggested in the current research are implemented in a selected industry. The obtained results in the industry referred to were endorsed both by the industry's elite experts and academic authorities.
 

Keywords

Hidden costs
Opportunities cost
Cost of damage to the brand
  • Vaxevanidis, N., Petropoulos, G., Avakumovic, J., Mourlas, A., (2009), Cost Of Quality Models And Their Implementation In Manufacturing Firms, International Journal For Quality Research, 3(1).
  • Juran, J.M., Godfrey, A.B., Juran’s quality handbook, 5th ed: McGraw-Hill, 1999.
  • رحمتی، حسین، (1389)، مدل ریاضی فازی جهت بهینه‌سازی هزینه‌هایکیفیت، (پایان­نامه کارشناسی ارشد)، دانشگاه گیلان.
  • حقی، فرشاد،(1392)، رویکرد شبکه‌های بیزین برای مدلسازی هزینه­های کیفیت، (پایان­نامه کارشناسی ارشد)، دانشگاه بوعلی سینا.
  • Sailaja, A., Basak, P.C., Iswanadhan, K.G.V, (2015), Hidden Costs Of Quality: Measurement & Analysis, International Journal Of  Managing Value and Supply Chains (IJMVSC), 6(2).
  • Teeravaraprug, J., “Quantification of Tangible and Intangible Quality Costs” ,2004.
  • Modhiya, , Desai, D., (2016), A Review on Cost of Quality Methodology and Hidden Costs in Manufacturing Industries, REST Journal on Emerging trends in Modelling and Manufacturing, 2(4): p. 87-94.
  • دارابی، محمد و فلاحی نژاد، عباس، (1388)، بررسی سیستم هزینه‌یابی بر مبنای فعالیت درحسابداری مدیریت و ملاحظات رفتاری آن، مجله­ی بررسی­های حسابداری و حسابرسی، ص 71-106.
  • Suresh, K.k, (2006), Increasing The Visiblity Of Hidden Failure Costs, International Journal of Quality.
  • Ajodhia, V., (2010), Integrated Cost and Quality Benchmarking for Electricity Distribution Using DEA, International Journal of Energy Sector Management, 4(3), p. 417.
  • Vytautas, S., Asta, D., Alma, Z., (2013), Hidden Costs in the Evaluation of Quality Failure Cost, Inzinerine Ekonomika-Engineering Economics, 24(3), p.176-186.
  • Brotons, M., Sansalvador, E., (2013), Quality cost analysis: a case study of a Spanish organization, Total Quality Management, 24(4), p. 378–396.
  • Lari, A., and Asllani, A., (2013), Quality Cost Management Support System: An Effective Tool For Organisational Performance Improvement, Total Quality Mgmt & Business Excellence, 24 (3,4), p. 432-451.
  • Omar, M.k., & Murgan, S.h., (2014), An Improved Model For The Cost Of Quality, International Juran Of Quality And Reliability Management.
  • J.m.s & Selles.M.e.s, )2014), A Fuzzy Quality Coste Stimation Method, Fuzzy sets and system journal.
  • Muhammad Arsalan, F., Randolph, K., Henriqueta, N.,Antonio, A., (2017),Evaluating Cost -Quality Trade-Offs for Inspection Strategies ofManufacturingProcesse, Journal of Production Economics.
  • Amar Murumkar, S.n., Teli, U. m., Bhushi,, Deshpande, s., (2017), Hidden Cost of Quality: A Review, International Journal of Quality & Reliability Management, p.510-531.
  • Kenitra, J & Morocco, A.a., (2017), Estimating supplier’s hidden quality costs with Taguchi quality loss function and Topsis method, Industrial Engineering Laboratory, Team of Modeling, Optimization of Industrial Systems and Logistics, p.100-105.
  • Alglawe, A., Schiffauerova, A., Kuzgunkaya, O., (2017), Analysing the cost of quality within a supply chain using system dynamics approach , Journal of Total Quality Management.
  • Robert, L., Schmid t., Lauren, N., Pearson, N., (2019), Estimating The Cost Of Quality Of Errors In The Analytical Phase , p 60-66.
  • Kau, L., Nel, H., (2019(, Cost of Quality:A Review and Future Research Directions, International Journal of Social Ecology and Sustainable Development.
  • Cheshmberah, M., Asgari, Y., & Karbasian, M. (2020). Identifying, refining, measuring and analyzing the cost of quality (CoQ) (real case: a manufacturing firm). Int. Journal of Engineering and Technology, pp. 148-156.
  • Sergey, K., Andreas, E., Mehmet, K.,(2021), The Role of Marketing in Understanding and Controlling Cost of Quality, Journal of Economics and Management Sciences, 4(1).
  • عباس نیا، رضا و مرادی سنکی، وحید، (1389)، هزینه­های کیفیت پروژه­های ساخت، ششمین کنفرانس بین المللی مدیریت پروژه، ص 19-38.
  • فرجی، ابوالفضل، حقی، فرشاد، آقابابایی، سلمان و وحید خداکرمی، (1396)، رویکردی ‌نوین ‌به ‌تحلیل‌ هزینه­های کیفیت ‌با‌استفاده ‌از‌ شبکه بیزین هیبریدی، نشریه تخصصی مهندسی صنایع ،دوره51- 3، ص 297-310.
  • کاظمی، ابوالفضل و حاجی­پور، وحید، (2018)، رویکردی نوین جهت سنجش هزینه­های کیفیت با استفاده از مفاهیم کارت امتیازی متوازن با رویکردی فازی، فصلنامه علمی- پژوهشی مطالعات مدیریت صنعتی، دوره 48، ص109-130.
  • Cerinkovaite, M. E., (2011). Prekes zenklo vertes matavimo modeliai, Socialiniu mokslu studijos, 3(3), p. 967-981.
  • Haghi, F., (2013), Bizin networkingapproachtomodel  cost of quality, (A Thesis Of Master Of Science), Bu ali sina university, (Persian).
  • Daraby, M., & Falahinezhad, A., (2009), Reiew costing system Based on management accounting activity and its behavioral considerations, Accounting and Auditing Reviews magazine, p 71-106, (Persian).
  • Rahmaty, H., (2010), Fuzzy mathematical model for optimizing cost of quality, (A Thesis Of Master Of Science), Gilan university, (Persian).
  • Abasniya, R., & Moradysanky, V., (2010), Cost of quality of construction projects, Sixth international conference of project management, p19-38, (Persian).
  • Faraji, .A, Haghi, F., Aghababaie, S., KHodakarami, V., )2017(, A new approach to cost of quality analysis using bizin hybridy network, Journal of Industrial Engineering, 51(3), p 297-310, (Persian).
  • Kazemi, A., Hajipoor, V., )2018), A new approach to measuring the cost of quality using the concepts of Balanced Scorecard with a fuzzy approach, Journal of Scientific research of Industrial Management Studies, 48, p109-130, (Persian)

 

Journal of Quality Engineering and Management
Volume 11, Issue 1
Spring 2021
Pages 1-14

Home

Editorial Board

Indexing and Abstracting

Guide for Authors

Submit Manuscript

Reviewers

Contact Us