What is it about?
Quality-related costs represent a significant concern for manufacturing organizations, as they directly influence competitiveness, efficiency, and long-term sustainability. Understanding how these costs interact is crucial for developing effective quality management strategies, particularly in emerging economies such as India. This study investigates the interactions among cost of quality (CoQ) factors in the Indian manufacturing sector using an interpretive structural modeling (ISM) approach. A comprehensive literature review identified critical CoQ components, which were then structurally interrelated through ISM to develop a hierarchical framework that clarifies the relationships between driving and dependent factors. This framework provides insight into how specific CoQ elements influence one another, offering actionable guidance for quality management. The study not only advances theoretical understanding but also contributes a practical tool for decision-makers in manufacturing. Key findings indicate that prevention-related factors act as strong drivers, whereas appraisal- and failure-related costs are more dependent. The proposed ISM-based framework provides a strategic lens for prioritizing quality improvement initiatives.
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Why is it important?
Managing quality-related costs is vital for manufacturing firms because these costs directly affect efficiency, market competitiveness, and long-term growth. In India, where industries face rising global competition and cost challenges, understanding how different components of the cost of quality (CoQ) interact is especially important. Many organizations struggle to see these interconnections, which can lead to poor investment decisions and weak quality outcomes. This study addresses that gap by applying interpretive structural modeling (ISM) to uncover the relationships among CoQ factors. The results show that prevention costs strongly influence the system, while appraisal and failure costs are more dependent. The framework helps managers focus on prevention, make better use of resources, and design strategies for sustainable improvement in manufacturing.
Perspectives
This study offers both theoretical and practical perspectives. From a theoretical viewpoint, it enhances the understanding of cost of quality (CoQ) by showing how prevention, appraisal, and failure costs are interlinked rather than independent. The ISM-based framework provides a structured lens to analyze these relationships, contributing to quality management literature in emerging economies. From a practical perspective, the framework serves as a decision-making tool for managers in the Indian manufacturing sector. By identifying prevention costs as key drivers, it encourages firms to shift focus from reactive measures to proactive strategies. This perspective not only reduces overall quality costs but also promotes long-term competitiveness, efficiency, and sustainability in manufacturing practices.
Dr. Hans Kaushik
Dayalbagh Educational Institute
Read the Original
This page is a summary of: Interactions among cost of quality factors in Indian manufacturing: An interpretive structural modeling approach, Design+, September 2025, Inno Science Press,
DOI: 10.36922/dp025110018.
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