Quality Costing in Selected Service Enterprises: A Multivariate Comparative Analysis
Purpose: The main objective of the conducted research was to identify the level of quality costs in selected service enterprises, as previous publications on quality costing tended to focus on manufacturing companies. In addition, three research questions relating to a quality cost structure, service process phases and processes were posed. Design/Methodology/Approach: The author invited three business entities to participate in the research project. They were providers of water supply and sewage disposal services, employment agency services and construction services, respectively.The author achieved the objective of the empirical research by exemplifying the procedure of a quality costing model. The triangulation of research techniques (documentation content analysis, observation, quantitative data analysis) played an essential role. The analysis of quantitative data was carried out using multivariate comparative analysis and indicator analysis. Findings: The highest quality costs were identified in the water supply and sewage disposal service provider, almost 10 times less in the company that is a temporary employment agency, and the least in the construction business. Practical implications: The results develop the knowledge about the quality costing in the service enterprises. The main limitation is lack of appropriate legal regulations obliging to maintain a quality costing. The complete voluntary nature of this tool means that companies do not attempt to record quality-related costs and it was hard to find entities which want take part in the research, so author examined only three selected and willing enterprises provides different services. The key of the success of using quality costing is the maturity of the organization. Originality/Value: Prevention costs play the most important role in the service companies participating in the research. The largest proportion of quality costs arises during the service delivery phase. Core processes are responsible for generating the vast majority of quality costs.