Assessment of Cost of Quality and its Effects on Manufacturing Performance : A Case Study of Special Ice Company Limited, Ghana

There is an increasing trend in competition on the global market and this has compelled many manufacturing and service companies to revise their understanding of quality. Customers today make informed choices and patronize products and services based on their quality. There are also regulations which are established by government agencies to ensure that products and services are of expected quality that satisfies the needs of the customer. This demand from customers has triggered a need for manufacturing companies to always provide quality products to stay in competition. Provision of quality products has a cost element attached to it. The study was a case study and focused on the assessment of cost of quality and its effect on manufacturing performance. There have been several researches that have shown the relevance of cost of quality assessment in a manufacturing firm. This research looks at cost of quality with specific emphasis on the classical P-A-F (Prevention-Appraisal-Failure) cost model and tries to ascertain its effects on manufacturing performance. The study focused on Special Ice Company Limited as a case study. The study employed three categories namely, cost of prevention, cost of appraisal and cost of failure as a proxy for cost of quality on the manufacturing performance. A sample of 80 participants was randomly selected for this study. Primary data was collected and analyzed. The findings show that the cost of quality element like cost of external failure and cost of appraisal had a statistically significant impact on the manufacturing performance of the company. A semi-structured interview was also conducted with the Manager Director to further understand the posturing of the top management with regards to the study. The study recommended that the organization make a conscious effort to sensitize employees to understand the cost of quality and its implications on the manufacturing performance of the company and also appraise their production processes at all times and ensure their entire staff adhere to accepted procedures. Again, the study also recommended that top management get actively involved and make a conscious effort to incorporate the cost of quality in their decision-making process and get all staff to align and adhere to it and also pay close attention to customer complaints act on it to improve on the products