Skip to main content

Abstract

The goal associated with quality costs management, is to reduce them, because they can make up a significant proportion of a company’s overall expenses, but the majority of Portuguese companies from the textile industry sector do not use quality cost management systems. Additionally, there is a scarcity of sectorial case studies on this topic. Thus, a research gap seems to exist demanding more case studies on the application of quality cost models on specific contexts. The main objective of this work is show how to implement the Prevention-Appraisal-Failure (PAF) Model in a dyeing and knitting finishing company. The implementation established an appropriate categorization for each quality cost element, data were collected and analysed. The total quality costs represent 12% of sales turnover, distributed unevenly by four categories: 23% of prevention costs; 26% of appraisal costs, 46% of internal failures costs, and 5% of external failures costs. Top managers considered this value higher than initially anticipated and promoted the deployment of improvement projects. This work can provide guidelines for companies in the same sector to adopt such quantification as a means of justifying new improvement projects and reduce costs.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

References

  1. ATP - Associação Têxtil e Vestuário de Portugal: Directory Fashion from Portugal 4.0. Multitema (2019)

    Google Scholar 

  2. Silva, A., Vieira, C., Alves, J., Roque, M.: Manual de Produção + Limpa da Indústria Têxtil. 156 (2011)

    Google Scholar 

  3. Banco de Portugal: Análise setorial da indústria dos têxteis e vestuário 2012–2016. https://www.bportugal.pt/sites/default/files/anexos/documentos-relacionados/nie_estudo_9_2012.pdf, (Accessed 14 April 2023)

  4. Viola, L.: Os custos relacionados com a qualidade na prática fiscal das empresas portuguesas. Universidade de Évora, Comparative case study (2016)

    Google Scholar 

  5. Crosby, P.B.: Quality is Free: The Art of Making Quality Certain. McGraw-Hill, New York (1979)

    Google Scholar 

  6. Schiffauerova, A., Thomson, V.: A review of research on cost of quality models and best practices. Inter. J. Quality Reliability Manag. 23, 647–669 (2006)

    Article  Google Scholar 

  7. Cheah, S., Shahbudin, A.S.M., Taib, F.M.: Tracking hidden quality costs in a manufacturing company: An action research. Inter. J. Quality and Reliability Manag. 28(4), 405–425 (2011)

    Article  Google Scholar 

  8. Johnson, M.: The development of measures of the cost of quality for an engineering unit. Inter. J. Quality Reliability Manag. 12(2), 86–100 (1995)

    Article  Google Scholar 

  9. Plewa, M., Kaiser, G., Hartmann, E.: Is quality still free?: Empirical evidence on quality cost in modern manufacturing. Inter. J. Quality and Reliability Manag. 33(9), 1270–1285 (2016)

    Article  Google Scholar 

  10. Sturm, S., Kaiser, G., Hartmann, E.: Long-run dynamics between cost of quality and quality performance. Inter. J. Quality a Reliability Manag. 36(8), 1438–1453 (2019)

    Article  Google Scholar 

  11. Campanella, J.:. Principles of quality costs: principles, implementation, and use. In: ASQ’s 53rd Annual Congress Proceedings, vol. 1, p. 2 (1999)

    Google Scholar 

  12. Neely, A., Gregory, M., Platts, K.: Performance measurement system design. Int. J. Oper. Prod. Manag. 15(4), 80–116 (1995)

    Article  Google Scholar 

  13. Yang, C.C.: Improving the definition and quantification of quality costs. Total Qual. Manag. Bus. Excell. 19(3), 175–191 (2008)

    Article  Google Scholar 

  14. Cociorva, A., Saraiva, M., Novas, O., Ferreira, J. C.: Os custos da qualidade nas empresas portuguesas certificadas. Revista TMQ, 151–182 (2010)

    Google Scholar 

  15. Santos, S.: A relevância dos Custos da Qualidade nas PME Portuguesas. Universidade Lusófona de Humanidades e Tecnologias, Lisboa (2015)

    Google Scholar 

  16. Biadacz, R.: Quality cost management in the SMEs of Poland. The TQM J. 33(7), 1–38 (2021)

    Article  Google Scholar 

  17. Psomas, E., Dimitrantzou, C., Vouzas, F.: Practical implications of cost of quality: a systematic literature review. Int. J. Product. Perform. Manag. 71(8), 3581–3605 (2022)

    Article  Google Scholar 

  18. Mukhopadhyay, A.R.: Estimation of cost of quality in an indian textile industry for reducing cost of non-conformance. Total Qual. Manag. 15(2), 229–234 (2004)

    Article  Google Scholar 

  19. Teplická, K., Hurná, S.: New approach of costs of quality according their trend of during long period in industrial enterprises in SMEs. Manag. Syst. Production Eng. 29(1), 20–26 (2021)

    Article  Google Scholar 

  20. Velkoska, C., Tomov, M.: Understanding and application of quality costs in automotive manufacturing companies in North Macedonia: empirical study. Inter. J. Quality Reliability Manag. 40(6), 1463–1484 (2023)

    Article  Google Scholar 

  21. Ghunaim, N.M., Jaaron, A.A.: The influence of cost of quality on the performance of food manufacturing companies: an empirical study. The TQM Journal 34(4), 788–806 (2022)

    Article  Google Scholar 

  22. Sousa, S., Nunes, E.: Framework to determine the quality cost and risk of alternative control plans in uncertain contexts. Int. J. Ind. Eng.Theory Appl. Pract. 27(5), 747–759 (2020)

    Google Scholar 

  23. Makhanya, B.B., Nel, H., Pretorius, J.H.C.: Factors affecting the cost of poor quality management in the South African manufacturing sector: structural equation modelling. Int. J. Learn. Chang. 14(5–6), 600–624 (2022)

    Article  Google Scholar 

  24. Roden, S., Dale, B.G.: Quality costing in a small engineering company: issues and difficulties. TQM Mag. 13(6), 388–399 (2001)

    Article  Google Scholar 

  25. Yin, K.: Applications of case study research. In: Bickman, L.,  Rog, D.J. (eds.)  Applied Social Research Methods Series, 2nd ed.,  vol. 34. Sage Publication, London (2003)

    Google Scholar 

  26. Hussey, J., Hussey, R.: Business research. MacMillan Press, London (1997)

    Book  Google Scholar 

  27. Dale, B.G., Plunkett, J.: Definitions of quality costs. In: Quality Costing, pp. 23–35 Springer, NY (1991). https://doi.org/10.1007/978-1-4615-3870-7_2

  28. BSI: BS 6143–2 Guide to the Economics of Quality – Part 2: Prevention, appraisal and failure model (1990)

    Google Scholar 

  29. Malik, T., Khalid, M., Zulqarnain, R., Iqbal, A.: Cost of quality: findings of a wood products’manufacturer. TQM J. 28(1), 2–20 (2016)

    Article  Google Scholar 

  30. Elizondo-Noriega, A.: An analysis on the prevention, appraisal, and failure model in COQ: convergences and contradictions. In: IIE Annual Conference. Proceedings, pp. 758–763 Institute of Industrial and Systems Engineers (IISE) (2017)

    Google Scholar 

  31. Purushothama, B.: Costing and cost of quality. In Training and Development of Technical Staff in the Textile Industry. Woodhead Publishing India (2012)

    Google Scholar 

Download references

Acknowledgements

This work has been supported by FCT – Fundação para a Ciência e Tecnologia within the R&D Units Project Scope: UIDB/00319/2020.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sérgio Sousa .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2023 IFIP International Federation for Information Processing

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Barros, B., Rodrigues, C., Sousa, S., Nunes, E. (2023). Implementation of a Quality Cost Management Model: Case Study from the Textile Industry Sector. In: Alfnes, E., Romsdal, A., Strandhagen, J.O., von Cieminski, G., Romero, D. (eds) Advances in Production Management Systems. Production Management Systems for Responsible Manufacturing, Service, and Logistics Futures. APMS 2023. IFIP Advances in Information and Communication Technology, vol 691. Springer, Cham. https://doi.org/10.1007/978-3-031-43670-3_20

Download citation

  • DOI: https://doi.org/10.1007/978-3-031-43670-3_20

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-43669-7

  • Online ISBN: 978-3-031-43670-3

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics