A conceptual framework of quality cost chain in strategic cost management

This study outlines a method employing the concept of quality cost in Strategic Cost Management (SCM). 

The authors use appraisal, failure, and preventive (AFP) actions to implement SCM as part of their initial analysis of the organizations’ internal value chains. The study goes on to relate AFP actions and costs of quality to identify the study’s scope. Researchers looked at activities, costs, and quality to discover what conceptual or practical gaps could exist for the analysis.

The authors found that the appraisal, failure, and preventive quality cost model describes opportunities to reduce costs and raise profit simultaneously; the authors use present costs of poor quality as the benchmark. Organizations that identify AFP actions and quality costs in their value chain are more likely to succeed in applying SCM. The study’s value involves incorporating quality costs in a research study of SCM. Current research studies infrequently assess how quality costs affect Strategic Cost Management.

The scope of the study defines the value chain and quality costs. By examining the relationships between activities, quality, and costs, the research aims to identify any conceptual or practical gaps within the scope of the study. The AFP quality cost model can thus find practical solutions. Additionally, the costs of activities can be used as performance indicators.

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