Abstract
This thesis evaluates the use of the Process Cost Model to identify, categorise and analyse Quality related costs, as defined within the British Standard BS6143 Part 1: 1992. It compares and contrasts this approach against the traditional Prevention-Appraisal-Failure (P-A-F) model used in most manufacturing environments.
The evaluation was accomplished by conducting a pilot study in a manufacturing area and an administration area over a three month period during 1998. A cross-functional team was established in each area to carry out the study and evaluate the results.
The results demonstrate that the Process Cost Model was able to identify a wide range of costs that would not normally be included in a traditional quality cost analysis. The detail provided on both costs of conformance and non-conformance proved to be an ideal mechanism to control the section's budgeted costs and to identify key areas for improvement. However, because of the amount of detail, it proved difficult to summarise at company level.
It was also found that when applying the Process Model to non-manufacturing areas it was necessary to develop local mechanisms to identify the cost elements, as the finance system did not capture the required information. The manufacturing area on the other hand already had in place detailed financial recording systems that allowed easy data capture.
The use of the Process Cost model will be developed further in each section and department to provide ownership to those responsible for the process. These cost reports will provide information on the total operation cost and help to prioritise
improvement actions.
| Date of Award | Jul 1998 |
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| Original language | English |