Proactive approach to the application of quality cost data
University of Wisconsin--Stout. Research Services
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Philip Crosby established the widespread ‘Quality Costs’ accounting system. It allows management to track the prevention, appraisal, internal, and external failure costs of an organization. The trend information is invaluable to assure the organization’s efforts in its continual improvement and profit maximization. Often missing from the endeavor is the related prioritization and corrective action model. In addition ‘hidden costs’ are often overlooked. A literature search has exposed the pros and cons of the existing ‘Quality Cost’ approach. Based on the literature findings, this paper presents elements of a model for a more proactive utilization of data and discussion of total actual costs.