Quality cost management support system: an effective tool for organisational performance improvement

Abstract

The purpose of this study was to bring into focus the relationship between the cost of quality (COQ) and performance-improvement measurements, and to suggest that the total COQ be used as an overall measure of organisational performance. Previous research has examined quality costs and different cost minimisation methods, and introduced a variety of methods for measuring the performance of organisations. With a clear understanding of the importance of these two areas of research, the present study links quality costs to operational processes. The authors introduce a prototype management support system that helps measure, monitor, and improve quality costs associated with operational processes. The results of the pilot study conducted in this research show that the quality cost model can be used to measure the overall performance of organisations. In addition, the study links this management support system to the requirements of quality standards such as ISO 9001 and quality awards such as Malcolm Baldrige National Quality Award and European Foundation of Quality Management.

Keywords:

• quality costs
• management support systems
• performance evaluation
• process management