An integrated approach for prioritizing lean and agile production factors based on costs of quality with a case study in the home appliance industry

Abstract

Purpose The purpose of this paper is to prioritize lean production (LP) and agile production (AP) factors based on costs of quality (COQ). Design/methodology/approach After literature review, two separated houses of quality (HoQ) have been developed. By the first HoQ, LP and AP factors can be proritized based on prevention and appraisal costs and by the second HoQ, LP and AP factors can be prioritized based on failure costs. The proposed approach has been examined by analyzing data collected from 36 home appliance producers of Isfahan as an industrial province of Iran. Findings The first HoQ indicates that the highest and the lowest priorities are related to over-production (lean factor) and speed (agility factor), respectively. The second HoQ implies that the highest and the lowest priorities are related to responsiveness (agility factor) and inventory (lean factor), respectively. Quadrant analysis also indicates that defectives and over-processing are the two factors that have the highest priorities based on both failure costs and appraisal and prevention costs. As a major finding, LP factors have strong relationship with prevention and appraisal costs; and AP factors have strong relationship with failure costs. Practical implications The proposed approach helps organizations in reducing their costs. By clarifying the relationship of the LP and AP factors and the COQ, managers can determine appropriate strategies with the lowest cost. Originality/value The integrated approach of this study has not been applied and studied in the literature. The subject of the relationship of LP and AP and COQ is relatively new, which integrates the two areas of production management and quality management.