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Title: Cost of quality measurement in food manufacturing companies: the Greek case
Authors: Psomas, Evangelos
Dimitrantzou, Christina
Vouzas, Fotios
Bouranta, Nancy
Type: Article
Subjects: FRASCATI::Social sciences::Economics and Business::Business and Management
Keywords: Greece
Cost of quality
Food manufacturing companies
PAF model
Issue Date: 2018
Publisher: Emerald Publishing
Source: International Journal of Productivity and Performance Management
Volume: 67
Issue: 9
First Page: 1882
Last Page: 1900
Abstract: Purpose – The purpose of this paper is to focus on the cost of quality (CoQ) of food manufacturing companies. The study aims at empirically validating the conceptual structure of the core dimensions of CoQ (prevention, appraisal, internal and external failure cost) and determining their level and relationships. Determining the reasons for not measuring the CoQ as well as the barriers-difficulties and benefits of the CoQ measurement is also an aim of the present study. Design/methodology/approach – Greek food manufacturing companies were approached through a structured questionnaire and 91 participated in the study. Exploratory and confirmatory factor analysis, descriptive statistics and correlation analysis are applied for data analysis. Findings – The structure of the core dimensions of CoQ is empirically validated, while all of them range within medium levels and are inter-related. The reasons for companies not measuring the CoQ as well as the barriers-difficulties of companies measuring the CoQ are not significant. On the contrary, significant benefits are derived from the CoQ measurement. Research limitations/implications – The small sample of the food manufacturing companies operating in one country and the subjective business evidence collected are the main limitations of the present study. Practical implications – Food companies can be motivated to establish a robust CoQ measurement system, which would reflect the level of the CoQ dimensions. According to the results of the CoQ measurement, a food company can make decisions to increase the prevention and appraisal costs and decrease the internal- and external-failure costs in order to be more competitive in the market. Originality/value – The paper provides deeper insights into the level and inter-relations of empirically validated CoQ dimensions. Very few studies on the CoQ in food manufacturing companies have been carried out in Greece and the present study makes the picture of the CoQ status in this sector more clear.
ISSN: 1741-0401
Other Identifiers: 10.1108/IJPPM-12-2017-0325
Appears in Collections:Department of Business Administration

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