A hybrid model for process quality costing

Describes the introduction of a quality costing system, using the process model, within a division of GEC Alsthom Engineering Systems Ltd. The system was introduced to identify and prioritize improvement areas within the context of a continuous improvement programme. Includes a critical review of a former quality costing system within the division based on the prevention, appraisal and failure model. Initial work focused on the use of the IDEF methodology, recommended in BS 6143: Part 1: 1992, to model major business processes. However, this approach was found to be inappropriate as the models created were complex and failed to gain widespread acceptance within the division. A hybrid model, using integrated flowcharts, was developed; this proved successful in securing understanding and ownership of major processes. Indicates a cost of non‐conformance of approximately 10 per cent and identifies four main areas for improvement activities.