We build a model to measure and account for the cost of quality. We incorporate the impact of quality on lead time variance and on service reliability and demand. Quality costs are a joint and nonlinear function of various parameters of the manufacturing process. Our model shows that it may not...

The research is a pioneering attempt to determine the optimal level of investment in quality by construction companies. The methodology is based on quantifying the four types of quality-related costs in residential construction, and relates them to each other by expressing them all as...