Decision Sciences Journal
Volume 27, Number 4
Fall 1996
Examining the Impact of Speed of Quality Improvement on
Quality-Related Costs
S. Thomas Foster, Jr.
Department of CIS & PM, Boise State University, Boise, ID 83725
Everett E. Adam, Jr.
Department of Management, College of Business & Public
Administration, University of Missouri-Columbia, Columbia, MO 65211
ABSTRACT
The Fine (1986) quality-based learning curve model is extended to
include the consideration of speed of quality improvement. The
model demonstrates that under different circumstances rapid quality
improvement effects are either beneficial or detrimental to
improvement in quality-related costs. Hypotheses are developed from
the analysis of this speed of quality improvement model. The
hypotheses are tested in an automotive parts manufacturing company
with five similar plants. Results show that with an increase in the
speed of quality improvement, the rate of growth in prevention and
appraisal costs decrease and the rate of growth in failure costs
are unaffected. Rapid speed of quality improvement does yield
lesser decreases in failure costs than slower, steadier
improvement. However, rapid speed of quality improvement does not
yield the predicted lesser decrease in prevention and appraisal
costs than slower, steadier improvement. Rapid speed of quality
improvement might or might not benefit the organization, perhaps an
explanation for some Total Quality Management (TQM) failures. A
more deliberate, learning organization is suggested from this
research.
Subject Areas: Case Study, Empirical Research, Learning,
Mathematical Modeling, Quality, and Total Quality Management.
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