Zero defects: a quality costs approach

Zero Defects has been advocated a s the ultimate target for quality control and assurance.Thispaper conducts an economic analysis of such a concept.The traditional frame work of quality

costs analysis is used to provide the bas is of analysis.A modified quality costs model is formulated to incorporate the revenue effects of quality and the dynamic nature of the manufacturing environment.It is shown that,for the quality cost model specified in this paper,the optimal dynamic strategy for the producer is to continuously improve product quality. Further more,the consumers'perspective and the existence of hidden or unidentifiable defects further reinforce the importance of quality improvement.In this way,a sound economic basis is provided for the Zero Defects concept.