Model of quality costs and economic benefits of a business process of manufacturing companies

The objective of the study is to develop a mathematical model to measure the quality cost and economic benefits of the implementation of the quality improvement program within a business process of manufacturing companies. The economic benefits are obtained from saving quality costs resulting from a...

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Autores principales:	Muhammad Rosiawan, Moses Laksono Singgih, Erwin Widodo
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2019
Materias:	quality cost performance target cost savings economic benefits payback period Engineering (General). Civil engineering (General) TA1-2040
Acceso en línea:	https://doaj.org/article/ef20214e0cbb47b99c9e4459ee0dc099
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id	oai:doaj.org-article:ef20214e0cbb47b99c9e4459ee0dc099
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spelling	oai:doaj.org-article:ef20214e0cbb47b99c9e4459ee0dc0992021-11-04T15:51:56ZModel of quality costs and economic benefits of a business process of manufacturing companies2331-191610.1080/23311916.2019.1678228https://doaj.org/article/ef20214e0cbb47b99c9e4459ee0dc0992019-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311916.2019.1678228https://doaj.org/toc/2331-1916The objective of the study is to develop a mathematical model to measure the quality cost and economic benefits of the implementation of the quality improvement program within a business process of manufacturing companies. The economic benefits are obtained from saving quality costs resulting from achieving operational performance targets. The research methodology is used; firstly, the authors developed a conceptual model as a basis for a mathematical model. Secondly, they used a numerical experiment to illustrate the measurement of the effect of the change of the model parameters’ values (e.g. number of performance indicators, and level target of performance target) toward the performance target achieved, cost savings obtained, and economic benefits. If the value of the model parameters increases, then the economic benefits will increase as well, and give a shorter return period of investment. And vice versa, if the value of the model parameters decreases, then the economic benefits will decrease as well and give a longer return period of investment. The model describes the dynamics of the quality costs and economic benefits periodically obtained from a quality improvement program.Muhammad RosiawanMoses Laksono SinggihErwin WidodoTaylor & Francis Grouparticlequality costperformance targetcost savingseconomic benefitspayback periodEngineering (General). Civil engineering (General)TA1-2040ENCogent Engineering, Vol 6, Iss 1 (2019)
institution	DOAJ
collection	DOAJ
language	EN
topic	quality cost performance target cost savings economic benefits payback period Engineering (General). Civil engineering (General) TA1-2040
spellingShingle	quality cost performance target cost savings economic benefits payback period Engineering (General). Civil engineering (General) TA1-2040 Muhammad Rosiawan Moses Laksono Singgih Erwin Widodo Model of quality costs and economic benefits of a business process of manufacturing companies
description	The objective of the study is to develop a mathematical model to measure the quality cost and economic benefits of the implementation of the quality improvement program within a business process of manufacturing companies. The economic benefits are obtained from saving quality costs resulting from achieving operational performance targets. The research methodology is used; firstly, the authors developed a conceptual model as a basis for a mathematical model. Secondly, they used a numerical experiment to illustrate the measurement of the effect of the change of the model parameters’ values (e.g. number of performance indicators, and level target of performance target) toward the performance target achieved, cost savings obtained, and economic benefits. If the value of the model parameters increases, then the economic benefits will increase as well, and give a shorter return period of investment. And vice versa, if the value of the model parameters decreases, then the economic benefits will decrease as well and give a longer return period of investment. The model describes the dynamics of the quality costs and economic benefits periodically obtained from a quality improvement program.
format	article
author	Muhammad Rosiawan Moses Laksono Singgih Erwin Widodo
author_facet	Muhammad Rosiawan Moses Laksono Singgih Erwin Widodo
author_sort	Muhammad Rosiawan
title	Model of quality costs and economic benefits of a business process of manufacturing companies
title_short	Model of quality costs and economic benefits of a business process of manufacturing companies
title_full	Model of quality costs and economic benefits of a business process of manufacturing companies
title_fullStr	Model of quality costs and economic benefits of a business process of manufacturing companies
title_full_unstemmed	Model of quality costs and economic benefits of a business process of manufacturing companies
title_sort	model of quality costs and economic benefits of a business process of manufacturing companies
publisher	Taylor & Francis Group
publishDate	2019
url	https://doaj.org/article/ef20214e0cbb47b99c9e4459ee0dc099
work_keys_str_mv	AT muhammadrosiawan modelofqualitycostsandeconomicbenefitsofabusinessprocessofmanufacturingcompanies AT moseslaksonosinggih modelofqualitycostsandeconomicbenefitsofabusinessprocessofmanufacturingcompanies AT erwinwidodo modelofqualitycostsandeconomicbenefitsofabusinessprocessofmanufacturingcompanies
_version_	1718444685852147712

Model of quality costs and economic benefits of a business process of manufacturing companies

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