A review of research on cost of quality models and best practices

Abstract

PurposeThis paper aims to present a survey of published literature about various quality costing approaches and reports of their success in order to provide a better understanding of cost of quality (CoQ) methods.Design/methodology/approachThe paper's approach is a literature review and discussion of the issues surrounding quality costing approaches.FindingsEven though the literature review shows an interest by the academic community, a CoQ approach is not utilized in most quality management programs. The evidence presented shows that companies that do adopt CoQ methods are successful in reducing quality costs and improving quality for their customers. The survey shows that the method most commonly implemented is the classical prevention‐appraisal‐failure model; however, other quality cost models are used with success as well.Originality/valueThe paper shows that the selected CoQ model must suit the situation, the environment, the purpose and the needs of the company in order to have a chance to become a successful systematic tool in a quality management program.