Conference article

Quality Cost Modeling Process for Production Systems

Ínci Şentarh
çankaya University, Department of Management, Turkey

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Published in: 10th QMOD Conference. Quality Management and Organiqatinal Development. Our Dreams of Excellence; 18-20 June; 2007 in Helsingborg; Sweden

Linköping Electronic Conference Proceedings 26:97, p.

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Published: 2008-02-15


ISSN: 1650-3686 (print), 1650-3740 (online)


Minimizing the sum of quality costs related to limited resources forms one of the main determinants in a company’s success. In production systems; resources such as labors inspecting items produced; labors training personnel to prevent items from erroneous results; labors reworking on erroneous items; labors dealing with complaints about erroneous products etc. are limited. Hence; it is important to find out the most suitable mix of conformance and nonconformance costs of products in allocation of the scarce resources.

In literature; the cost of poor quality as a result of imperfections of a vendor’s incoming input materials and the errors of the manufacturing process were investigated (Tagaras; 1996). An optimization model including appointment of the cost of quality between the two parties as buyers and suppliers was also analyzed (Baiman; 2000).

However; models optimizing total quality costs including each quality cost components has not been studied extensively. In this study; a generalized optimization model for a multistage production system based on quality costs as conformance and nonconformance costs has been developed.


Quality cost; modeling; production systems


Baiman; S; Fisher; P.E.; Rajan; M.V. (2000) “Information; Contracting; and Quality Costs”; Management Science; 46 (6); pp 776-789.

Feigenbaum; A.V. (1983) Total Quality Control; 3rd ed. NY; Mc Graw Hill.

Freeman; H.L. “How to Put Quality Costs to Work”; 12th Metropolitan Section All Day Conference (Sept. 1960).

Juran; J.M. (1974) Quality Control Handbook; NY. ; Mac Graw Hill.

Masser; W.J. (1957) “The Quality Manager and Quality Costs”; Industrial Quality Control

Tagaras; G. and Lee; H.L.; (1996) “Economic Models for Vendor Evaluation with Quality Cost Analysis”; Management Science; 42 (11) ; pp 1531-1543.

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