Pharmaceutical quality system

Abstract

Purpose: The concept of quality is embedded in every process that takes place in an organization. There is a general perception that while increasing quality cost also increases. This perception was challenged by Dr. Genichi Taguchi. Taguchi states that quality can be increased without increasing cost and cost can also be reduced by increasing quality (Campanella 1999). Measuring quality-related costs has been advocated as an important component of quality improvement (Moen 1998). Gryna (1988) states that quality related costs range from 10-30 percent of sales and 25-40 percent of operating expenses. Researchers have proposed several methods of quality cost estimation. Commonly used methods areQuality Costing Approach, Process Cost Approach and Quality Loss Approach (Campanella, 1999). Tsiakals (1983) used Quality Costing Approach (PAF Approach) to collect Cost of Quality in a Pharmaceutical Industry and Malchi and McGurk (2001) used alternative cost model (Schiffauerova et al, 2006).The present paper aimed atcollecting and measuring Cost of Poor Quality in a Pharmaceutical Industry on the basis of Process Cost Approach.