A fuzzy model for the valuation of quality management system

Abstract

Purpose – The economic effects resulting from the commitment to ISO 9001 certification is a controversial issue. Many authors have concluded about the positive economic effects resulting from the establishment of quality systems in accordance with the requirements established in the ISO 9001 standard, but other authors have not appreciated this positive relationship. The purpose of this paper is to provide a model that facilitates the valuation of the ISO 9001 quality system. Design/methodology/approach – In the process of developing a valuation model, given the uncertainty this process involves, the use of fuzzy math is very useful. First, as for an internal valuation method, the authors highlight the discounted cash flow in a fuzzy environment. The internal valuation will be completed by external expert opinions. To improve the information supplied by experts, the paper makes use of the experton theory. In this context, the authors propose the aggregation of the experts’ opinion by using basic defuzzification distribution (BADD)-fuzzy induced ordered weighted averaging. Finally, the results undergo contra-expertise. After presenting the theoretical model, the authors proceed with its application by using a case study. Findings – The paper develops a new method for the economic evaluation of the ISO 9001 certification. Originality/value – The authors propose the valuation of ISO 9001 quality management system, and they do it using some interesting tools which fuzzy logic offers. In this way, it is possible to eliminate subjectivity and improve the final results.