Department of Industrial Engineering

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https://escholar.umt.edu.pk/handle/123456789/1176

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Browsing Department of Industrial Engineering by Subject "Automobile Industry, Cost of Good Quality, Cost of Poor Quality, Cost of Quality, Pakistan"

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    Compare Cost of Good Quality & Cost of Poor Quality And Have a Wise Decision: A study from Automobile Industry of Pakistan.
    (IOSR Journal of Business and Management., 2015-09) Ashraf, Syed Rehan
    For the rationalization of improved quality, quality needs to be provided in numeric / monetary values, for this purpose cost of quality is measured and analyzed to get optimum levels. In this connection it is required to compare cost of good quality against cost of poor quality, to have a wise judgment of better choice. Survey was conducted in target population that helped in identification of importance of investment on cost of good quality rather than bearing loss due to poor quality. Furthermore, several other correlations were also identified between cost of quality and overall product cost. Purpose & Scope: Objective of the study is to find a quantifiable relationship of cost of good quality and cost of poor quality, so the importance of quality could be explained effortlessly and effectively. Study is carried out within the automobile industry of Pakistan, mainly in the northern part of country. Design / methodology / approach: In order to measure COGQ & COPQ, a structured format was developed and used for data collection (actual & hypothetical) through emails and in person interviews from industry experts. Findings: Study showed that the cost of good quality is 22 ~ 50 times lower than cost of poor quality and this comparative ratio is derived and may be used as rule of thumb. Originality / Value: COGQ is often compromised and ignored, as its ability to safeguard COPQ is not known in numeric terms or monetary values, this study has provided an example to calculate and compare these two costs.