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QICID: 10864
Title: Quality Costs and Quality Standards: Does ISO 9000 Care about Quality Costs?
Copyright: 1999, ASQ
Author: Schottmiller, John C.
Organization: RM Consulting Inc., Mendon, NY
Subject: Cost of quality (COQ),Total Quality Management (TQM),ISO 9000:2000,History;
Series: Annual Quality Congress, Anaheim, CA, Vol. 53, No. 0, May 1999, pp. 504-506
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Abstract: As the ISO 9000 standards have evolved, so has their handling of the cost of quality concept. ISO 9001, 9002, and 9003 have not mentioned cost of quality. It is in ISO 9004 that one finds quality costs mentioned as one of the recommended financial measurements of quality. This recommendation appears in the 1994 revision of ISO 9004. The 1994 standard is a revision of the original 1987 ISO 9004 document. The revision differs from the original standard and from MIL-Q-9858A and MIL-STD-1520C by offering three models for financial analysis. These models are noted in ISO 9004-1-1994 as: prevention, appraisal, and failure cost analysis; process cost analysis; and quality loss analysis. The process cost model is new, and it demonstrates an adaptation of the quality cost concept to the TQM (total quality management) environment. Even broader aspects of quality costs appeared in reports issued by ISO/Technical Committee 176 during the development of the new ISO 10000 series. Early drafts of the year 2000 revisions of the ISO 9000 series reveal a less specific approach by ISO guidelines, so that the method of financial reporting will be left to the discretion of the reporting organization.
Number of pages: 3
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