Purpose – The purpose of this paper is to construct a basic profit model of quality so as to highlight the economic implications of process quality in an accessible way. Design/methodology/approach – Economic evaluation of the four profit parameters (price, unit costs, sales, fixed costs)...

Purpose – The purpose of this paper is to suggest a quality cost measurement model which is managed in coordination and conjunction with the accounting reports, thereby creating a comprehensive management control tool for organizations. Design/methodology/approach – The contents of this...

Purpose – The purpose of this paper is to develop two models in the field of cost of quality. One model would be for estimating/calculating cost of quality and the second model would be for implementing cost of quality system in an industry. Design/methodology/approach – Although most...

This article proposes a comprehensive introduction into the analysis and calculating costs and identifies the different areas of activities in company which can lead to improving the quality and reducing costs by using the PAF cost model. The basic precondition for quality improvement in company...