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QICID: 19588
Title: Quality Problems and Their Real Costs
Copyright: 2004, ASQ
Author: Freiesleben, Johannes
Organization: Ringier AG, Zurich, Switzerland
Subject: Cost of quality (COQ),Cost management,Management commitment,Prevention costs,Quality Improvement System (QIS);
Series: Quality Progress, Vol. 37, No. 12, December 2004, pp. 49-55
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Abstract: When considering the cost of poor quality, it is important to consider the hidden cost of managerial transactions. If management is distracted from its normal responsibilities, these activities require additional resources. Quality problems respond only superficially to inspection because process performance is not improved. By focusing on a quality improvement program, quality aware companies can control costs associated with managerial transactions. A sidebar article explains the fundamentals of the transaction cost theory of Ronald Coase.
Number of pages: 7
Price for ASQ Members: $5.00
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