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Cost of Quality PerformanceMeasurement Framework: A structured approach to developingperformance measures for quality management by utilizing the results of a Cost of Quality study
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Management.
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Management.
2014 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

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.
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-159480OAI: oai:DiVA.org:kth-159480DiVA: diva2:785124
Supervisors
Examiners
Available from: 2015-02-10 Created: 2015-02-02 Last updated: 2015-03-31Bibliographically approved

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Citation style
  • apa
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  • nn-NB
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  • Other locale
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Output format
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  • text
  • asciidoc
  • rtf