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100 1 _aSINGER, Marcos
_940355
245 1 0 _aIf prevention is better than cure, why do firms do the opposite?
260 _aOxfordshire :
_bRoutledge,
_cset./out. 2009
520 3 _aCommon wisdom tells that, regarding quality, prevention is better than appraisal. Although scholars and practitioners concur with that, firms in practice prioritise appraisal, leading to high non-conformance quality costs. To unravel this puzzle, we understand quality as the combined result of prevention, done by the firm's back office (e.g. production), and appraisal, done by the front office (e.g. marketing). We propose a game theoretic model for which quality expenditure is an equilibrium outcome that depends on the cost of technology, the customers' sensitivity to quality, and the distribution of (variable) incentives within the firm. We conjecture those conditions for the reported quality expenditures of several companies, and calculate their optimal quality investment policy. As advocated by experts, we find that prevention should more than double appraisal, and non-conformance costs should approach zero.
590 _aVolume 20
590 _aNumbers 9-10
700 1 _aDONOSO, Patricio
_940356
773 0 8 _tTotal Quality Management & Business Excellence
_g20, 9-10, p. 905-919
_dOxfordshire : Routledge, set./out. 2009
_xISSN 14783363
_w
942 _cS
998 _a20100520
_b1500^b
_cDaiane
998 _a20100531
_b1323^b
_cCarolina
999 _aConvertido do Formato PHL
_bPHL2MARC21 1.1
_c33409
_d33409
041 _aeng