engleski

Monitoring Quality Costs through the Loss Function and the Process Capability Analysis

Quality costs include costs resulting from manufacturing of products lacking the predetermined level of quality and the appropriate quality characteristics. The loss function, which has been introduced by G. Taguchi, emphasizes impacts of quality costs on the entire company. On the other side, the process capability analysis in quality costs includes only the costs of those products which do not have the predetermined specific level of quality. The paper aims to describe differences between these two different approaches to determining the quality costs and it emphasizes the importance of quality costs impacts on the company. It addresses issues and requirements for a successful application and makes a comparison between these two approaches in different situations. The paper shows that the extant of quality costs is greater than it is assumed under the classical understanding of quality costs. The acknowledgment that quality costs have a greater impact on the company is more realistic than the assumption that quality costs are equal only to production costs of waste products. The paper addresses this problem and presents an original model of comparing quality costs which have been registered by the loss function and by the capability analysis.

quality costs; the process capability analysis; the Taguchi loss function; competitiveness

Sažetak rada tiskan je posebno u: Proceedings of the 6th International Conference “An Enterprise Odyssey: Corporate governance and public policy — path to sustainable future” ; p. 171-172. ISBN: 978-953-6025-56-5. Citiran je u znanstvenim bazama: EconLit, ProQuest, EBSCO