| This research presents a decision model to determine expected manufacturing performance using quality costing approach for a complex, imperfect discrete multistage manufacturing and assembly system. This model (known as M-PAFO model) measures the manufacturing performance by identifying costs for normal manufacturing activities, prevention activities, appraisal activities, failure activities, and opportunity losses due to imperfections in product quality, and actual manufacturing environment. This research further emphasizes on the importance to consider numerous manufacturing costs, as these costs are main contributors of manufacturing performances and affected by management decisions, manufacturing characteristics and cost elements. Most studies on quality costing focused on measuring costs for the prevention, appraisal & failure (PAF) elements, do not include the related manufacturing costs or consider the imperfections in real environment. This model integrates three major approaches in cost of quality, through categorising the cost using standard manufacturing and PAF approach, identifying the effects of quality control strategies through process cost model (PCM), and measuring the detail expenditures using activity based costing (ABC) approach. |
