Quality is free – New Empirical Evidence from Manufacturing

Plewa M, Kaiser G, Hartmann E, Feisel E (2015)


Publication Language: English

Publication Type: Journal article

Publication year: 2015

Journal

Publisher: Academy of Management

Abstract

We provide new empirical evidence for competing representations of the prevention-appraisal-failure model of quality cost. Using a large, unique data set for secondary analysis, combined with employing a high-level measure for overall quality performance, we validate the aggregate explanatory power of the prevalent cost of quality model variants. We conduct regression analysis to reveal relationships among total cost of quality, its components and overall quality performance. As a result, total cost of quality and its failure cost component are observed significantly lower at higher levels of quality, while the prevention and appraisal cost components are not observed to be significantly higher at higher levels of quality. Consequently we propose a modification to the modern representation of the prevention-appraisal-failure model to explain the data consistently. The important management implication is that in manufacturing, ever higher levels of quality are associated with significantly lower quality cost.

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How to cite

APA:

Plewa, M., Kaiser, G., Hartmann, E., & Feisel, E. (2015). Quality is free – New Empirical Evidence from Manufacturing. Academy of Management Journal.

MLA:

Plewa, Markus, et al. "Quality is free – New Empirical Evidence from Manufacturing." Academy of Management Journal (2015).

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