A fuzzy dynamic model for total quality cost

Abstract

This paper presents a dynamic Quality Cost Model capable of reconciling contributions of Juran’s traditional Model with those of the Zero Defects Model. Here, the cost functions depend on a company’s level of conformance in each period and at which stage of the Maturity Grid a company is positioned. To determine the stage at which the company is positioned on Crosby’s Maturity Grid, expert’s opinions will be considered using fuzzy logic to incorporate Hidden Quality Costs in the failure costs calculated by the company. The model will introduce exponential regression (ER) using Induced Ordered Weighted Average (IOWA). The results show that the learning process present in the proposed model leads it to evolve over time to positions that bring to mind the Zero Defects model. However, as appreciated in the case study, it can also regress and introduce the organisation into a level of saturation where the Cost of Quality is optimised before reaching perfection.