The Concept of the Cost of Quality (COQ): the Practice and Prospects for Application

Authors

  • Сергей Анатольевич Смирнов St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation https://orcid.org/0000-0001-8311-2208

Abstract

The article is devoted to the problems of cost management based on the “cost of quality” concept. Quality cost measurement is a highly perspective management technique, especially under conditions of perpetual increasing role of corporate information systems. It gives the opportunity to determine the costs of poor quality more accurately and quickly. Modern trends of the Cost of Quality (COQ) concept development are discussed, as well as the critique of traditional PAF model. Researchers estimate that the costs of low quality, on average, are up to 20 % of sales, that means a substantial potential for the cost reduction.

Keywords:

Cost of quality (COQ), Quality cost measurement, prevention, appraisal, and failure (PAF) approach, prevention costs, appraisal costs, internal failure costs, external failure costs, continuous improvement, quality cost measurement under activity-based costing, Taguchi’s quality loss function

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Author Biography

Сергей Анатольевич Смирнов, St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

кандидат экономических наук, доцент

References

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References in Latin Alphabet

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Translation of references in Russian into English

Вестник Санкт-Петербургского университета. Серия 5. Экономика. 2012. Вып. 3

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Published

2012-09-28

How to Cite

Смирнов, С. А. (2012). The Concept of the Cost of Quality (COQ): the Practice and Prospects for Application. St Petersburg University Journal of Economic Studies, (3), 146–156. Retrieved from https://economicsjournal.spbu.ru/article/view/2600

Issue

No. 3 (2012)

Section

Theory and Practice of Management

License

Articles of the St Petersburg University Journal of Economic Studies are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.

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