Cost of Quality Models in Continuous Production Systems with Deteriorating Quality: A Review and Research Agenda
DOI:
https://doi.org/10.20961/performa.v25i1.2758Keywords:
Cost of Quality, continuous production, quality deteriorationAbstract
Cost of Quality (CoQ) is a critical tool in quality management, widely used to identify, evaluate, and optimize quality-related costs. While CoQ models such as the Prevention-Appraisal-Failure (PAF), Activity-Based Costing (ABC), Crosby, Opportunity Cost, and Process Costing have been extensively applied in discrete manufacturing systems, they remain underdeveloped for continuous production systems that exhibit time-dependent quality deterioration. This literature review explores the applicability of existing CoQ models to continuous and deteriorating systems. The analysis reveals that most CoQ models assume static failure behavior and do not accommodate gradual degradation or dynamic input quality. Among the models reviewed, the Opportunity Cost model is found to be the most conceptually aligned with dynamic loss due to declining quality, while ABC can complement it by tracing cost drivers linked to quality-related activities. Furthermore, this study outlines the potential of combining these models into a time-dependent dynamic CoQ framework, integrating deterioration functions and quality thresholds. Such a model could better represent the trade-off between prevention investments and the economic losses due to quality decay. Methodologically, this study employs a systematic literature review and comparative analysis to evaluate and synthesize prior CoQ models. The significance of this research lies in addressing theoretical and practical gaps in CoQ modeling for continuous production, which is increasingly important for industries striving for efficiency, competitiveness, and sustainability. This review ultimately provides a conceptual foundation for developing a mathematically optimized CoQ model for continuous systems, with potential validation through biogas production case studies
References
Ahmed, Y., Yaakob, Z., Akhtar, P., & Sopian, K. (2015). Production of Biogas and Performance Evaluation of Existing Treatment Processes in Palm Oil Mill Effluent (POME). Renewable and Sustainable Energy Reviews, 42, 1260–1278. https://doi.org/10.1016/j.rser.2014.10.073
Alsada, R. Y., & Kumar, Y. (2022). A Measurement of Quality Costs in Industrial Organizations. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2128253
Ayach, L., A. A., & Bouziri, M. (2018). Quality Cost Analysis for a Cement Industry: A Case Study. International Journal of Supply Chain Management, 7(6), 357–364. https://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/2080
Boguniewicz-Zabłocka, J., & Kłosok-Bazan, I. (2020). Sustainable Processing of Paper Industry Waterand Wastewater: A Case Study on The Condition of Limited Freshwater Resources. Polish Journal of Environmental Studies, 29(3), 2063–2070. https://doi.org/10.15244/pjoes/111676
Bris, P., Cermakova, M., & Molnar, V. (2022). Quality Cost Flows in Manufacturing Companies. Acta Logistica, 9(4), 449–456. https://doi.org/10.22306/al.v9i4.345
Cruz-Casas, D. E., Aguilar, C. N., Ascacio-Valdés, J. A., Rodríguez-Herrera, R., Chávez-González, M. L., & Flores-Gallegos, A. C. (2021). Enzymatic Hydrolysis and Microbial Fermentation: The Most Favorable Biotechnological Methods for the Release of Bioactive Peptides. Food Chemistry: Molecular Sciences, 3, 100047. https://doi.org/10.1016/j.fochms.2021.100047
Daniela Gavriluc, I., & Georgescu, I. E. (2023). A Review of The Literature on the Costs of Quality. Annales Universitatis Apulensis Series Oeconomica, 25(1), 65–79. https://newoeconomica.uab.ro/up/AUASO/articles/a_review_of_the_literature_on_the_costs_of_quality-article-663b14a152cb4.pdf
Dürrenmatt, D. J., & Gujer, W. (2012). Data-Driven Modeling Approaches to Support Wastewater Treatment Plant Operation. Environmental Modelling & Software, 30, 47–56. https://doi.org/10.1016/j.envsoft.2011.11.007
Feng, Y., Tian, X., Chen, Y., Wang, Z., Xia, J., Qian, J., Zhuang, Y., & Chu, J. (2021). Real-Time and On-Line Monitoring of Ethanol Fermentation Process by Viable Cell Sensor and Electronic Nose. Bioresources and Bioprocessing, 8(1), 37. https://doi.org/10.1186/s40643-021-00391-5
Ganzorig, B., & Bira, S. (2023). Analyzing Quality Costs Using The PAF Model and Vector Optimization Methods. https://www.researchgate.net/publication/387859556
Gual, J. C., Climent, R. P., Regaliza, J. C. P., & García, F. J. P. (2024). Pipes and Puddles Framework: Risk Management in Manufacturing Processes to Reduce the Total Cost of Quality. Journal of Industrial Engineering and Management, 17(1), 35–62. https://doi.org/10.3926/jiem.6448
Hansen, D. R., & Mowen, M. M. (2021). Cost Management: Accounting and Control (9th ed.). Cengage Learning.
Herzog, I., & Grabowska, M. (2021). Quality Cost Account as a Framework of Continuous Improvement at Operational and Strategic Level. Management and Production Engineering Review, 12(4), 122–132. https://doi.org/10.24425/mper.2021.140000
Jokovic, N., Vukasinovic, M., Veljovic, K., Tolinacki, M., & Topisirovic, L. (2011). Characterization of non-starter lactic acid bacteria in traditionally produced home-made radan cheese during ripening. Archives of Biological Sciences, 63(1), 1–10. https://doi.org/10.2298/ABS1101001J
Kazemi, A., Omid Beheshti, S., & Nobari, A. (2020). A Novel Fuzzy Knowledge-Based System to Measure Cost of Quality. Journal of Applied Intelligent Systems & Information Sciences, 1(2), 91–101. https://jaisis.khatam.ac.ir/article_122028.html
Khadim, N., Thaheem, M. J., Ullah, F., & Mahmood, M. N. (2023). Quantifying the Cost of Quality in Construction Projects: An Insight Into the Base of the Iceberg. Quality & Quantity, 57(6), 5403–5429. https://doi.org/10.1007/s11135-022-01574-8
Khazaeli, S., Kalvandi, R., & Sahebi, H. (2024). A Multi-Level Multi-Product Supply Chain Network Design of Vegetable Products Considering Costs of Quality: A Case Study. PLoS ONE, 19(9), e0303054. https://doi.org/10.1371/journal.pone.0303054
Kokot-Stȩpień, P. (2021). The Specificity of the Functioning of the Quality Cost Account Within the Quality Management System of an Enterprise. Production Engineering Archives, 27(4), 283–290. https://doi.org/10.30657/pea.2021.27.38
Krebish, H. A. K., & Berberoglu, A. (2020). The Effect Of Management (Style) on Cost of Quality in Engineering Projects. Proceedings on Engineering Sciences, 2(1), 31–40. https://doi.org/10.24874/PES02.01.004
Martínez, J. M. B., & Selles, M. E. S. (2015). A Fuzzy Quality Cost Estimation Method. Fuzzy Sets and Systems, 266, 157–170. https://doi.org/10.1016/j.fss.2014.12.014
Mejares, C. T., Huppertz, T., & Chandrapala, J. (2022). Thermal Processing of Buffalo Milk – A Review. International Dairy Journal, 129, 105311. https://doi.org/10.1016/j.idairyj.2021.105311
Okudaira, S. (2022). Points to Consider for Continuous Manufacturing of Biotechnological Drug Products. YAKUGAKU ZASSHI, 142(7), 745–748. https://doi.org/10.1248/yakushi.21-00211-3
Oliveira, G. S., Soares, R. C., & Sampietro, J. A. (2020). Quality Function Deployment (QFD) Applied to the Variables that Influence Quality Costs in Mechanized Forest Harvest Operations. Floresta, 50(4), 1717–1724. https://doi.org/10.5380/rf.v50i4.60137
Palanisamy, I., & Palanichamy, S. (2025). Analysis and Evaluation of Cost of Quality (COQ) Elements on Total Quality Costs in Construction Projects: Design of Experiments. Matéria (Rio De Janeiro), 30. https://doi.org/10.1590/1517-7076-rmat-2024-0738
Pérez-Fernández, L., Sebastián, M. A., & González-Gaya, C. (2022). Methodology to Optimize Quality Costs in Manufacturing Based on Multi-Criteria Analysis and Lean Strategies. Applied Sciences, 12(7). https://doi.org/10.3390/app12073295
Purwanggono, B., & Valentinus, R. (2019). A Calculation of Cost of Quality With Activity Based Costing Method to Maintain Quality Between Production Processes. J@ti Undip: Jurnal Teknik Industri, 14(1), 1-10. https://doi.org/10.14710/jati.14.1.1-10
Rahayu, A. S., Karsiwulan, D., Yuwono, H., Trisnawati, I., Mulyasari, S., Rahardjo, S., Hokermin, S., & Paramita, V. (2015). Buku Panduan Konversi POME Menjadi Biogas Pengembangan Proyek di Indonesia. Winrock Internasional.
Reis, A. M., Dall-Orsoletta, A., Nunes, E., Costa, L., & Sousa, S. (2024). Quality Costs and Industry 4.0: Inspection Strategy Modelling and Reviewing. The International Journal of Advanced Manufacturing Technology, 136, 3883–3897 .https://doi.org/10.1007/s00170-024-13184-9
Rogošić, A. (2021). Quality Cost Reporting as a Determinant of Quality Costing Maturity. International Journal for Quality Research, 15(4), 1233–1244. https://doi.org/10.24874/IJQR15.04-13
Rosiawan, M., Laksono Singgih, M., & Widodo, E. (2019a). Model of Quality Costs and Economic Benefits of a Business Process of Manufacturing Companies. Cogent Engineering, 6(1). https://doi.org/10.1080/23311916.2019.1678228
Rosiawan, M., Laksono Singgih, M., & Widodo, E. (2019b). Model of Quality Costs and Economic Benefits of a Business Process of Manufacturing Companies. Cogent Engineering, 6(1). https://doi.org/10.1080/23311916.2019.1678228
Sansalvador, M. E., & Brotons, J. M. (2023). A Fuzzy Dynamic Model for Total Quality Cost. Economic Computation and Economic Cybernetics Studies and Research, 57(2), 5–20. https://doi.org/10.24818/18423264/57.2.23.01
Schiffauerova, A., & Thomson, V. (2006a). A Review of Research on Cost of Quality Models and Best Practices. International Journal of Quality & Reliability Management, 23(6), 647–669. https://doi.org/10.1108/02656710610672470
Schiffauerova, A., & Thomson, V. (2006b). A Review of Research on Cost of Quality Models and Best Practices. International Journal of Quality & Reliability Management, 23(6), 647–669. https://doi.org/10.1108/02656710610672470
Shraim, M. (2020). A Simple Model for Identifying Costs of Quality. 2020 ASEE Virtual Annual Conference Content Access Proceedings. https://doi.org/10.18260/1-2--34051.
Spagnoli, P., Defalchidu, L., Vlerick, P., & Jacxsens, L. (2024). The Relationship Between Food Safety Culture Maturity and Cost of Quality: An Empirical Pilot Study in the Food Industry. Foods, 13(4). https://doi.org/10.3390/foods13040571
Tambunan, T. (2022). A Conceptual Framework of Quality Cost Chain in Strategic Cost Management. The TQM Journal, 36(3), 762–784. https://doi.org/10.1108/tqm-09-2021-0281
Tang, S. L., Aoieong, R. T., & Ahmed, S. M. (2004). The Use of Process Cost Model (PCM) for Measuring Quality Costs of Construction Projects: Model testing. Construction Management and Economics, 22(3), 263–275. https://doi.org/10.1080/0144619032000064091
Teplická, K., & Hurná, S. (2021). New Approach of Costs of Quality According Their Trend Of During Long Period in Industrial Enterprises in SMEs. Management Systems in Production Engineering, 29(1), 20–26. https://doi.org/10.2478/mspe-2021-0003
Thabet, S. O., Ragab, A. A., & Yehia, N. A. (2024). Optimizing Cost of Quality in Commercial Projects Using Fuzzy Expert System. HBRC Journal, 20(1), 679–699. https://doi.org/10.1080/16874048.2024.2369457
Velkoska, C., & Tomov, M. (2021). Quality Costs Concept And Measurement – Does A Reaffirmation In A New Direction Needed? Vision International Refereed Scientific Journal, 6(1), 65–80. https://doi.org/10.55843/ivisum2116065v
Yacob, S., Hassan, M. A., Shirai, Y., Wakisaka, M., & Subash, S. (2005). Baseline Study of Methane Emission from Open Digesting Tanks of Palm Oil Mill Effluent Treatment. Chemosphere, 59(11), 1575–1581. https://doi.org/10.1016/j.chemosphere.2004.11.040
Yang, L., Liu, Q., Xia, T., Ye, C., & Li, J. (2022). Preventive Maintenance Strategy Optimization in Manufacturing System Considering Energy Efficiency and Quality Cost. Energies, 15(21). https://doi.org/10.3390/en15218237
Zahar, M., Barkany, A. E, & Biyaali, A. E. (2016). Cost of Quality in Health Care: A Case Study in Clinical Laboratory. International Journal of Productivity and Quality Management, 17(4), 536. https://doi.org/10.1504/ijpqm.2016.075254
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Performa: Media Ilmiah Teknik Industri
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
