Cost of Quality PerformanceMeasurement Framework: A structured approach to developingperformance measures for quality management by utilizing the results of a Cost of Quality study
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
With the advent of Total Quality Management, continuous quality improvement has become acentral concept to manufacturers. It is a way not only to effectively meet customer requirements and increase revenues, but also to achieve them more efficiently and save costs. Previously, Cost of Quality (CoQ) has been used as a financial measure within the manufacturing industry to guide the continuous improvements toward higher quality. However, this approach has been found ineffective and inefficient. A CoQ system is complex to implement and is often used more as a scorekeeping tool rather than as a driver for continuous improvement. On the other hand, non-financial measures have been found to have a higher utilization and perceived effectiveness, as they provide immediate feedback on quality improvement efforts and they are easier to quantify and understand. With this in mind, this thesis has created a framework for manufacturing plants to develop non-financial performance measures to guide continuous quality improvement by utilizing the results of a Cost of Quality study. The framework takes its root in the most imperative aspects of a plant’s quality strategy and appropriate performance measures are chosen based on where the most issues to fulfill these lie.
Place, publisher, year, edition, pages
2014. , 146 p.
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-159480OAI: oai:DiVA.org:kth-159480DiVA: diva2:785124