Productivity and Quality in Smart Manufacturing Systems

COST OF QUALITY, ISO 9001 AND ITS IMPACT ON CORPORATE PERFORMANCE: A LITERATURE REVIEW

Muhammad Rosiawan, Moses L. Singgih dan Erwin Widodo

ABSTRACT

This paper aims to review the literatures in the area of cost quality and the implementation of ISO 9001 standard, as well as its impact on company performance. This literature study allows researcher to identify and analyze, first, the implementation of the ISO 9001 standard and its impact on company performance.Second,important information about the most widely type of quality cost used of by the company, the measurement of quality costs in company’s business functions, the impact on company performance, and the research methods usedare also provided. For thispurpose, the researchersconducted a study and analysis of the literaturespublished from 1994 to 2016on 11 important journals related to the topic of the impact of the implementation of ISO 9001 standard on the company performance. Suchperformance is then measuredin terms of both financial and operational performance. The findings of studyallows researchersto propose a future research agenda. Moreover this attainment make us possibleto propose a conceptual framework that integrates a measurement model of quality costs on business processes in manufacturing companies that implement ISO 9001standar, as well as how to measure the economic impact resulted from its implementation.

Keywords: ISO 9001, cost of quality, impact on company performance


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