A framework to implement QCS through process cost modeling

Abstract

Purpose – The purpose of this paper is to describe a structured framework to implement and sustain a quality costing system (QCS) based on process cost modeling (PCM) in process industries.Design/methodology/approach – After reviewing and analyzing various cost accounting methodologies practiced by companies the research objectives were achieved by acknowledging the need to attach fuzziness to notion of “quality”. The imprecise, vague, and complex information related to cost items under Prevention, Appraisal and Failure (PAF) segments is synthesized using well‐established fuzzy principles. A case based approach from process industry is discussed to implement and sustain quality costing system after prioritizing the processes.Findings – While conforming on the results of prior research on practice of quality costing approaches and the problems faced by the companies in implementing a quality management system the fuzzy approach (owing to its sound logic and effectiveness in identifying the vagueness and im...