Human Resources Cost of Quality Conformance: A Process Mining Effort-Based Application for a Fruit Canning Company

Eleni Sachini – Department of Financial and Management Engineering School of Engineering, University of the Aegean, Chios, Greece

Ioannis Boules – Department of Financial and Management Engineering School of Engineering, University of the Aegean, Chios, Greece

Michail Glykas – Department of Financial and Management Engineering, Engineering School, University of the Aegean, Greece

Abstract

Quality is the main factor that contributes decisively to the achievement of business goals and objectives. However, quality improve­ment leads to increases in production costs. Organizations, therefore, make a comparison between the business benefits and the associated quality costs in any quality improvement initiative. Even though the calculation of quality costs has become a prerequisite for quality implementation ini­tiatives our literature survey has revealed that existing accounting frame­works present serious drawbacks in the calculation of human resources costs associated with activities performed by individuals that are directly related to the design and implementation of quality management systems. In our research, we concluded with an Integrated Quality Cost Accounting framework, based on the combination of the following approaches: Activ­ity Based Costing, Process-Operations Mining, Human Resource Account­ing, and Cost of Quality (CoQ).

LIMEN Conference

8th International Scientific-Business Conference – LIMEN 2022 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – CONFERENCE PROCEEDINGS, Hybrid (EXE Budapest Center, Budapest, Hungary), December 1, 2022,

LIMEN Conference proceedings published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia

LIMEN Conference 2022 Conference proceedings: ISBN 978-86-80194-66-0, ISSN 2683-6149, DOI:  https://doi.org/10.31410/LIMEN.2022

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

Suggested citation

Sachini, E., Boules, I., & Glykas, M. (2022). Human Resources Cost of Quality Conformance: A Process Mining Effort-Based Application for a Fruit Canning Company. In V. Bevanda (Ed.), International Scientific-Business Conference – LIMEN 2022: Vol 8. Conference proceedings (pp. 195-209). Association of Economists and Managers of the Balkans.  https://doi.org/10.31410/LIMEN.2022.195

References

Akenbor, C. O. (2014). An accounting reflection of quality cost and customer satisfaction of health products in Nigeria. Journal of Business and Retail Management Research, 8(2), pp. 42-53.

Alglawe, A., Schiffauerova, A., & Kuzgunkaya, O. (2019). Analysing the cost of quality within a supply chain using system dynamics approach. Total Quality Management & Business Excellence, 30(15-16), 1630-1653.

Ampantzi, C., Psyllou, M., Diagkou, E., & Glykas, M. (2013). Managing the SME clustering process life-cycle. Business Process Management: Theory and Applications, 407-456.

Aoun, M., & Alaaraj, H. (2019). Balancing Hospital’s Financials through Implementing Cost of Quality Models. Journal of Accounting and Finance in Emerging Economies, 5(2), 197-202.

Bougoulia, E., & Glykas, M. (2022). Knowledge management maturity assessment frameworks: A proposed holistic approach. Knowledge and Process Management.

Crosby, P. B. (1979). Quality is free-if you understand it. Winter Park Public Library History and Archive Collection, 4.

Dimitrantzou, C., Psomas, E., & Vouzas, F. (2020). Future research avenues of cost of quality: a systematic literature review. The TQM Journal.

Donnelly, L. F., Lee, G. M., & Sharek, P. J. (2018). Costs of quality and safety in radiology. Ra­diographics, 38(6), 1682-1687.

Glykas, M., Bailey, O., Al Maery, M., & Al Maery, N. (2015). Process and quality management in vocational education & training (VET). International Journal of Management Scienc­es and Business Research.

Glykas, M., Holden, T., & Wilhelmij, P. (1993). Modelling the collective behaviour of organisa­tional agents in the petrochemical industry using the agent relationship morphism analy­sis (ARMA) methodology. In Proceedings of the OOPSLA 93 Workshop on Modelling the Collective Behaviour of Organisational Agents.

Glykas, M., & Johnichen, G. (2017). Quality and process management systems in the UAE mar­itime industry. International Journal of Productivity Management and Assessment Tech­nologies (IJPMAT), 5(1), 20-39.

Glykas, M., Wilhelmij, P., & Holden, T. (1993). Formal methods in object orientation. In Pro­ceedings of the European Conference on Object Oriented Programming (ECOOP) (Vol. 93, pp. 26-30).

Glykas, M. M. (2011). Effort based performance measurement in business process management. Knowledge and Process Management, 18(1), 10-33.

Grigg, N. P. (2020). Redefining quality in terms of value, risk and cost: a literature review. In­ternational Journal of Quality & Reliability Management.

Kumar, M. P., Sahithi, P., & Revanth, S. S. (2020). Industry of quality (IoQ)–An industry 4.0 perspective. International Journal of Applied Research, 6(4), 109-114.

Makhanya, B. S., Nel, H., & Pretorius, J. H. C. (2018). A systematic literature review of the im­plementation of cost of quality. In 2018 IEEE International Conference on Industrial En­gineering and Engineering Management (IEEM) (pp. 726-730). IEEE.

Milicevic, V. (2000). Accounting of costs and business decision- making. Belgrade, Faculty of Economics Press, pp 239.

Ocakci, E., Niemann, J., Luminosu, C., & Artene, A. (2021). Quality Cost and Economic Analy­sis. A Synthesis in the Manufacturing Systems. In MATEC Web of Conferences (Vol. 343, p. 05008). EDP Sciences

Plunkett, J. J., & Dale, B. G. (1988). Quality costs: A critique of some ‘economic cost of quality’ models. The International Journal of Production Research, 26(11), 1713–1726.

Porter, M. E., & Advantage, C. (1985). Creating and sustaining superior performance. Compet­itive advantage, 167, 167-206.

Psomas, E., Dimitrantzou, C., & Vouzas, F. (2021). Practical implications of cost of quality: a systematic literature review. International Journal of Productivity and Performance Management.

Psomas, E., Dimitrantzou, C., Vouzas, F. & Bouranta, N. (2018), “Cost of quality measurement in food manufacturing companies: the Greek case“, International Journal of Productivity and Performance Management, 67(9), 1882-1900. https://doi.org/10.1108/IJPPM-12-2017-0325 

Pursglove, A. B., & Dale, B. G. (1995). Developing a quality costing system: key features and outcomes. Omega, 23(5), 567-575.

Robison, J. (1997). “Integrate quality cost concepts into teams’ problem-solving efforts”, Qual­ity Progress, Vol. 30 No. 3, p. 25.

Ross, S. A. (1977). The Determination of Financial Structure: The Incentive Signaling Ap­proach. The Bell Journal of Economics, 8.

Sawan, R., Low, J. F., & Schiffauerova, A. (2018). Quality cost of material procurement in con­struction projects. Engineering, construction and architectural management.

Teli, S. N., & Murumkar, A. (2018). Automobile Dealer Quality Cost: A Review. In National Conference on Recent Trends in Engineering & Technology (NCRTET-18).

Tsai, W. H. (1998). Quality cost measurement under activity‐based costing. International Jour­nal of Quality &Reliability Management.