Dynamic quality cost model based on complexity theory

Abstract

Purpose

This article presents a dynamic model of decision-making on Quality Costs, using the concepts of the Complexity Theory, consistent with the PAF models (Prevention Appraisal-Failures) and with the “optimum” derivation feature (generally towards Zero Defects).

Design/methodology/approach

After a literature review and the mathematical model development, this model was simulated in several situations and the results were evaluated, producing new insights.

Findings

The results show that the larger the delay between action and reaction "t" is, the more complex the system will be, and the effects of the decisions are experienced for “k” later periods, but for some specific “t” a dynamic balance is possible.

Research limitations/implications

The strategy is immutable. The quantity produced is not a variable in the model. The investment amount “x” is fixed.

Originality/value

This model is original due to the use of the Complexity Theory, and also to show that the optimum in terms of quality costs can be a positive value or Zero Defects, being in fact a moving target, depending on external conditions. The model value lies in the fact that it is dynamic, so closer to the reality of decision-making enterprises, and for revealing the importance of factors involved with complexity has, such as the time lag "t" for the success of management strategies of Quality Costs.

Citation

DUARTE JUNIOR, N.D.S.F. (2016), "Dynamic quality cost model based on complexity theory", International Journal of Quality & Reliability Management, Vol. 33 No. 5. https://doi.org/10.1108/IJQRM-07-2014-0085