PhD Final Thesis April 2013.pdf - Anglia Ruskin Research Online

Thesis Keith Gale 2013occurs at a point where the cost of prevention plus appraisal equals the cost offailure. The PAF Model is illustrated at Figure 3.5.Figure 3.5: Prevention, Appraisal and Failure Model adapted from BSI (1990)Not all research identifies such costs. Crosby (1979) asserted that ‘quality is free’based upon the premise that lack of quality and remedial action increases costs. Juran(1988) added that costs concerning poor quality would disappear if products andprocesses were perfect. Both statements surfaced from research undertaken withinthe manufacturing industries where the cost of poor quality is estimated between10% and 30% of total costs (Atkinson et al, 1991). Within the construction industry,few investigations have been made into the costs of quality but a study intoresidential construction projects in Dubai (Abdelsalam and Gad, 2009) revealed:Cost of quality 1.3%Failure costs 0.7%Total Cost of quality2.0% of total project works costsPlacing the above values into context of market competition, total cost of qualityrepresents a marginal cost to a project and represents a lower consideration than aprofit margin. As these values are not significant, an economic appraisal of qualitycosts has not been undertaken within this research. The importance of quality as a72