A Model for Prioritization of Improvement Opportunities Based on Quality Costs in the Process Interdependency Context

  • Maja Glogovac University of Belgrade, Serbia
  • Jovan Filipovic University of Belgrade, Serbia
  • Nedeljko Zivkovic University of Belgrade, Serbia
  • Veljko Jeremic University of Belgrade, Serbia
Keywords: quality costs, PAF model, process approach, nonconformities analysis, cost reduction

Abstract

In this paper, the PAF (preventive-appraisal-failure) quality costs model is used on the process level, in order to identify those processes which are critical as a top-priority for improvement. The elements of quality costs are considered in relation to the outputs of the processes, where the principle that one process affects the quality of another process by its outputs is taken into account. That is why the failure costs of the affected processes should also be assigned to the quality costs of the observed process. Using the factors proposed in the Process cost model, costs are identified and calculated for each process for two moments: the current (before improvements) and desired (after improvements). Improvements are implemented on the basis of the causes of nonconformity analysis and according to the PAF model assumption that preventive and appraisal activities reduce failure costs and the total costs of quality. The difference between the total costs of quality in two observed moments is seen as the greatest possible quality cost reduction for the observed process. This value is used as a criterion for ranking the processes according to their priority for improvements, taking into account the assumption of the PAF model that greater costs mean lower quality and hence a higher priority for improvement.

Published
2019-06-27
Section
ECONOMICS OF ENGINEERING DECISIONS