Studying the Role of Cost of Quality Information in Improvement

Abstract

The objective of this study is to investigate the relationship between the ability to apply quality cost information and planning and implementing quality improvement activities. The factors leading to increase in application capacity of quality cost information in organizations are also explored in this study. The research model explains how the application capacity of quality cost information affects the planning and implementation of quality improvement activities. The research model and assumptions are examined through “structural equation model" testing approach. The findings of this research show that there is a positive and direct relationship between the application capacity of quality cost information and planning and implementation of quality improvements activities. The data used in the present study were gathered from 102 Iranian companies manufacturing automotive spare parts. Due to the volume of samples, there are limitations in generalizing the study results. This study, through identifying the factors influencing the increase in ability of an organization to apply quality cost information, offers a framework for investment and improvement of these factors with the aim of using quality cost information.