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Economic sustainability and the cost of poor quality
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-6487-5522
2005 (English)In: Corporate Social Responsibility and Environmental Management, ISSN 1535-3958, E-ISSN 1535-3966, Vol. 12, no 4, p. 197-209Article in journal (Refereed) Published
Abstract [en]

Sustainable development (SD) on the organizational level is often measured using the triple bottom line, which divides performance reporting into the economic, environmental and social dimensions. Since total quality management (TQM) over the years has proven to contribute to good economic performance, it is interesting to review synergies of the two concepts TQM and SD. Indicators commonly used in the triple bottom line are compared with quality related measurements and a synthesis is proposed. Focus is on the economic dimension and indicators in the form of cost of poor quality (CPQ). The CPQ as a sustainability indicator is discussed and exemplified. The results indicate that existing economic sustainability performance measurements based on distribution of surplus should be complemented with indicators for internal losses. A sound profit is in most cases necessary, but it is not the sole condition for economic sustainability.

Place, publisher, year, edition, pages
2005. Vol. 12, no 4, p. 197-209
National Category
Reliability and Maintenance
Research subject
Quality Technology and Management
Identifiers
URN: urn:nbn:se:ltu:diva-4502DOI: 10.1002/csr.85Scopus ID: 2-s2.0-29344440697Local ID: 2707fb50-3047-11df-be83-000ea68e967bOAI: oai:DiVA.org:ltu-4502DiVA, id: diva2:977376
Note
Validerad; 2005; 20100315 (andbra)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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Isaksson, Raine

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