EXAMINING THE IMPACT OF SPEED OF QUALITY IMPROVEMENT ON QUALITY-RELATED COSTS

The Fine (1986) quality-based learning curve model is extended to incl ude the consideration of speed of quality improvement. The model demon strates that under different circumstances rapid quality improvement e ffects are either beneficial or detrimental to improvement in quality- related costs. Hypotheses are developed from the analysis of this spee d of quality improvement model. The hypotheses are tested in an automo tive parts manufacturing company with five similar plants. Results sho w that with an increase in the speed of quality improvement, the rate of growth in prevention and appraisal costs decrease and the rate of g rowth in failure costs are unaffected. Rapid speed of quality improvem ent does yield lesser decreases in failure costs than slower, steadier improvement. However, rapid speed of quality improvement does not yie ld the predicted lesser decrease in prevention and appraisal costs tha n slower, steadier improvement. Rapid speed of quality improvement mig ht or might not benefit the organization, perhaps an explanation for s ome Total Quality Management (TQM) failures. A more deliberate, learni ng organization is suggested from this research.