The increasing relevance of managing costs of poor quality (CoPQ). The case of the mineral water industry

Titolo Rivista MANAGEMENT CONTROL
Autori/Curatori Pier Luigi Marchini, Luca Fornaciari
Anno di pubblicazione 2016 Fascicolo 2016/3
Lingua Inglese Numero pagine 32 P. 65-96 Dimensione file 556 KB
DOI 10.3280/MACO2016-003005
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Qui sotto puoi vedere in anteprima la prima pagina di questo articolo.

Se questo articolo ti interessa, lo puoi acquistare (e scaricare in formato pdf) seguendo le facili indicazioni per acquistare il download credit. Acquista Download Credits per scaricare questo Articolo in formato PDF

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

The paper studies the relation between the "Cost of Poor Quality" (CoPQ) and the sustainability approach of the companies. For years, management believed that it was too expensive to provide high-quality products and service to customers, and used this motivation to keep companies output far from reaching its full potential. During the last years of the XX Century, management's attitude began to change as they found that in international markets quality products provided a greater return on investment and increased the organization's market share (Harrington, 1999). As a result, a great deal of attention was focused on improving the quality of output from all employees and from all the internal and external processes of the company. The present contribution aims to analyze the relationship in business firm between non-quality cost and the sustainability approach, and in particular if the introduction of a management control system aimed at reducing CoPQ may increase the environmental sustainability of a company, so encouraging to reconcile the financial perspective with the not financial one. To do this, the study is accompanied by a description of case study concerning a middle company placed in Italy in the bottling, production and distribution of natural mineral water industry, that has recently pursued the way of the definition of CoPQ also for the purpose of a sustainable growth.

Keywords:Management Control System, Cost of Poor Quality, Non-Quality Costs, Sustainability, Environmental and Social Performance, Corporate Social Responsibility.

  1. Adams C.A., Larrinaga-Gonzalez C. (2007), Engaging with organisations in pursuit of improved sustainability accounting and performance, Accounting, Auditing & Accountability Journal, 20, 3, pp. 333-355.
  2. Adams C.A., Mcnicholas P. (2007), Making a difference. Sustainability reporting, accountability and organisational change, Accounting, Auditing & Accountability Journal, 20, 3, pp. 382-402. DOI: 10.1108/09513570710748553
  3. Andersen B., Moen R.M. (1999), Integrating benchmarking and poor quality cost measurement for assisting the quality management work, Benchmarking: An International Journal, 6, 4, pp. 291-301.
  4. Anthony, R. N. (1965), Management Planning and Control Systems: A Framework for Analysis, Harvard Business School Press.
  5. Arioso L., de Lillo A., De Luca S., Ruspini E., Sala E. (2010), Il mondo della ricerca qualitativa, Torino, Utet.
  6. Bebbington J., Thomson I. (2013), Sustainable development, management and accounting: boundary crossing, Management Accounting Research, 24, pp. 277-283.
  7. Bennett M., James P. (1999), Sustainable measures: Evaluation and reporting of environmental and social performance, Sheffield, UK, Greenleaf Publishing.
  8. Bergman B., Klefsjö, B. (2010), Quality – from Customer Needs to Customer Satisfaction, Lund, Studenlitteratur, 3rd edition.
  9. Birkin F., Woodward D. (1997a), Management accounting for sustainable development Part 2: from economic to ecological efficiency, Management Accounting, 75, 7, pp. 42–45.
  10. Birkin F., Woodward D. (1997b), Management accounting for sustainable development Part 5: accounting for sustainable development, Management Accounting, 75, 10, pp. 52–54.
  11. Burgelman R.A. (1991), Intraorganizational ecology of strategy making and organizational adaptation: theory and field research, Organization Science, 2, pp. 239-262.
  13. Burritt R.L. (2004), Environmental management accounting: Roadblocks on the way to the green and pleasant land, Business Strategy and the Environment, 13, 1, pp. 13–32.
  15. Burritt R.L. (2012), Environmental performance accountability: planet, people, profits, Accounting, Auditing & Accountability Journal, 25, pp. 370-405.
  16. DOI: 10.1108/09513571211198791
  17. Burritt R.L., Saka C. (2006), Environmental management accounting applications and ecoefficiency: case studies from Japan, Journal of Cleaner Production, 14, pp. 1262-1275.
  18. Burritt R., Schaltegger S. (2010), Sustainability accounting and reporting: fad or trend?, Accounting, Auditing & Accountability Journal, 25, 2, pp. 829-846.
  19. Burritt R., Schaltegger S., Bennett M., Pohjola T., Csutora M. (2011), Environmental management accounting and Supply chain management, Amsterdam, Springer.
  20. Callens I., Tyteca D. (1999), Towards indicators of sustainable development for firms: a productive efficiency perspective, Ecological Economics, 28, pp. 41-53.
  21. Cardoni A. (2012), Business planning and management accounting in strategic networks: theoretical development and empirical evidence from enterprises’ network “agreement”, Management Control, Suppl. 3, pp. 91-116. DOI: 10.3280/MACO2013-SU3005
  22. Castellano N. (2011), Modelli e misure di performance aziendale: analisi della letteratura e spunti di ricerca, Management Control, 1, pp. 41-63. DOI: 10.3280/MACO2011-00100
  23. Ciroth A. (2009), Cost data quality considerations for eco-efficiency measures, Ecological Economics, 68, pp. 1583-1590.
  24. Corvalan C.F., Kjellstrom T., Smith K.R. (1999), Health, environment and sustainable development: identifying links and indicators to promote action, Epidemiology, 10, pp. 656–660.
  25. Delmas M., Etzion D., Nairn-Birch N. (2013), Triangulating environmental performance: What do corporate social responsibility ratings really capture? Academy of Management Perspectives, 12, 255-267.
  26. Derchi G. B., Burkert M., Oyon D. (2013), Environmental management accounting systems: a review of the evidence and propositions for future research, Book Series: Studies in Managerial and Financial Accounting, Volume 26, Emerald Group Publishing Limited, pp. 197-229.
  27. Diamandescu A. (2011), Non-quality costs and their consequences in the organization, Challenges of the knowledge society, Business Administration and Marketing, pp. 957-962.
  28. Diasmoller A., Schaltegger S. (2005), The sustainability balanced scorecard as a framework for eco-efficiency analysis, Journal of Industrial Ecology, 9, 4, pp. 73–83.
  29. Durden C. (2008), Towards a socially responsible management control system, Accounting, Auditing & Accountability Journal, 21, 5, pp. 671-694.
  30. DOI: 10.1108/09513570810872969
  31. Epstein M. J. (1996), Measuring corporate environmental performance, New York, McGraw-Hill.
  32. Feigenbaum A. V. (1991), Total Quality Control, New York: McGrawHill, 3rd edition.
  33. Gates S., Germain C. (2010), Integrating sustainability measures into strategic performance measurement systems: an empirical study, Management Accounting Quarterly, 11, 3, pp. 1-7.
  34. Figge F., Hahn T., Schaltegger S., Wagner M. (2002), The sustainability balanced scorecard – linking sustainability management to business strategy, Business Strategy and the environmental, 11, 5, pp. 269-284.
  35. Figge F., Hahn T. (2013), Value drivers of corporate eco-efficiency: management accounting information for the efficient use of environmental resources, Management Accounting Research, 24, 3, pp. 387-400.
  36. Global Reporting Initiative (2013), Reporting Principles and Standard Disclosure.
  37. Gond J.P., Herrbach O. (2006), Corporate social reporting as a learning tool? A theoretical framework, Journal of Business Ethics, 65, 4, pp. 359-371.
  38. Gond J.P., Grubnic S., Herzig C., Moon J. (2012), Configuring management control systems: theorizing the integration of strategy and sustainability, Management Accounting Research, 23, pp. 205-223.
  39. Gray R. (2002), The social accounting project and accounting organizations and society: privileging engagement, imaginings, new accountings and pragmatism over critique?, Accounting, Organizations and Society, 27, pp. 687-708
  40. Gryna F. M. (1999), Quality and Costs, in Juran J. M., Godfrey A. B., Juran’s Quality Handbook. New York, McGrawHill, 5th edition.
  41. Harrington H. J. (1999), Performance improvement: a total poor-quality cost System, The TQM Magazine, 11, 4, pp. 221-230.
  42. Harrington H. J. (1987), Poor-Quality Cost, ASQC Quality Press, 1st edition.
  43. Henri J. F. (2006), Management control systems and strategy: a resource-based view, Accounting, Organization and Society, 31, pp. 529-558.
  44. Henri J. F., Journeault M. (2009), Revisiting the link between management control systems and strategy in contingency-based research, Paper of the annual Conference of the Canadian Accounting Academic Association.
  45. Henri J. F., Journeault M. (2010), Eco-control: The influence of management control systems on environmental and economic performance, Accounting, Organizations and Society, 35, pp. 63–80.
  46. Isaksson R. (2005), Economic Sustainability and the Cost of Poor Quality, Corporate Social Responsibility and Environmental Management, 12, pp. 197-209.
  47. Ishikawa K. (1985), What is total quality control? The Japanese way, New Jersey, Prentice-Hall
  48. Krippendorff K. (1983), Analisi del contenuto. Introduzione metodologica, Torino, ERI.
  49. Krishnan S. (2006), Increasing the visibility of hidden failure costs, Measuring Business Excellence, 10, 4, pp. 77-101. Doi 13683040610719290.
  50. Länsiluoto A., Järvenpäa M. (2010), Greening the balanced scorecard, Business Horizons, 53, 4, pp. 385-395.
  51. Lee K.H. (2012), Carbon accounting for supply chain management in the automobile industry, Journal of Cleaner Production, 36, pp. 83-93.
  52. Lee K.H., Kim J. (2011), Integrating suppliers into green product innovation development: an empirical case study in the semiconductor industry, Business Strategy and the Environment, 20, 8, pp. 527-538.
  53. Lee K.H., Wu Y. (2014), Integrating sustainability performance measurement into logistics and supply networks: a multi-methodological approach, The British Accounting Review, 46, pp. 361-378.
  54. Marchi L. (2011), Integrazione pubblico-privato su metodologie e strumenti di controllo gestionale, Management Control, 2, pp. 5-8. DOI: 10.3280/MACO2011-002001
  55. Marginson D.E.W. (2002), Management control systems and their effects on strategy formation at middle-management levels: evidence from a UK organization, Strategic Management Journal, 23, pp. 1019-1031.
  56. Martinez-Lorente A.R., Dewhurst F., Dale B.G. (1998), Total quality management: origins and evolution of the term, The TQM Magazine, 10, 5, pp. 378-386.
  57. Miles M.B., Huberman A.M. (1994), Qualitative data analysis, Thousand Oaks, Sage.
  58. Milne M.J. (1996), On sustainability; the environment and management accounting, Management Accounting Research, 7, pp. 135-161.
  59. Milne M., Kearins K., Walton S. (2006), Creating adventures in Wonderland? The journey metaphor and environmental sustainability, Organization,13, 6, pp. 801-839.
  60. Mio C., Giornetti A. (2002), Bilancio e Ambiente, Milano, EGEA.
  61. Mio C., Borgato B. (2012). Performance measurement nelle istituzioni universitarie: verso una prospettiva di sostenibilità, Roma, RIREA.
  62. Mundy J. (2010), Creating dynamic tensions through a balanced use of management control systems, Accounting, Organizations and Society, 35, 5, pp. 499–523.
  64. Otley D. (1999), Performance management: a framework for management control systems research, Management Accounting Research, 10, pp. 363-382
  65. Owen D. (2008), Chronicles of wasted time? A personal reflection on the current state of, and future prospects for, social and environmental accounting research, Accounting, Auditing & Accountability Journal, 21, pp. 240-267.
  66. Parker L. D. (2005), Social and environmental accountability research: A view from the commentary box, Accounting, Auditing & Accountability Journal, 18, pp. 842-860.
  67. DOI: 10.1108/09513570510627739
  68. Parker L. D. (2011), Twenty-one years of social and environmental accountability research: A coming of age, Accounting Forum, 35, pp. 1-10.
  69. Doi. 10.1016/j.accfor.2010.11.001
  70. Perego P., Hartmann F. (2005), Influences of environmental strategy on the design and use of performance measurement systems, Proceedings of the 3rd conference on performance measurement and management control, Nice, France.
  71. Pondeville S., De Rongé Y. (2005), The impact of environmental strategy, stakeholder’s pressures and external environment on the implementation of management control systems, Proceedings of the 3rd conference on performance measurement and management control, Nice, France.
  72. Porter M.E., Van Der Linde C. (1995a), Toward a new conception of the environment competitiveness relationship, Journal of Economic Perspectives, 9, 4, pp. 97–118.
  74. Porter M.E., Van Der Linde C. (1995b), Reply, Harvard Business Review, pp. 206.
  75. Ricci C. (1986), Il controllo di qualità nelle aziende, Padova, Cedam.
  76. Saita M. (1971), I costi di qualità nelle imprese industrial, Milano, Isedi.
  77. Schiffauerova A., Thomson V. (2006), A review of research on cost of quality models and best practices, International Journal of Quality & Reliability Management, 23, 6, pp. 647-669.
  78. Silvi R., Bartolini M., Raffoni A., Visani F. (2012), Business Performance Analytics: level of adoption and support provided to Performance Measurement Systems, Management Control, Suppl. 3, pp. 117-142. DOI: 10.3280/MACO2013-SU3006
  79. Simons R. (1990), The role of management control systems in creating competitive advantage: new perspectives, Accounting, Organizations and Society, 15, 1/2, pp. 127–143. DOI: 10.1007/978-1-4899-7138-8_28
  80. Simons R., (1991), Strategic orientation and top management attention to control systems, Strategic Management Journal, 12, pp. 49–62.
  81. Simons R. (1994), How new top managers use control systems as levers of strategic renewal, Strategic Management Journal, 15, pp. 169–189.
  82. Simons R. (1995), Levers of control, how managers use innovative control systems to drive strategic renewal, Boston, Harward Business School Press.
  83. Simons R. (2004), Sistemi di controllo e misure di performance, Milano, Egea.
  84. Simons R. (2000), Performance Measurement and Control Systems for Implementing Strategy: Text and Cases, Englewood, Cliffs, NJ, Prentice Hall.
  85. Simons R. (2006), Levers of Organization Design: How Managers Use Accountability Systems for Greater Performance and Commitment, Boston, Harvard Business School Press.
  86. Sörqvist L. (2001), Kvalitetsbristkostnader: Ett hjälpmedel för verksamhetsutveckling. Lund, Studentlitteratur, 2nd edition.
  87. Srivastava S. (2007), Green supply chain management: a state-of-the-art literature review, International Journal of Management Reviews, 9, 1, pp. 53-80.
  89. The Institute of Social and Ethical AccountAbility (1999), Standards, guidelines and professional qualification.
  90. Tipaldo G. (2007), L’analisi del contenuto nella ricerca sociale. Spunti per una riflessione multidisciplinare, Torino, Edizioni Libreria Stampatori.
  91. Tsai W. (1998), Quality cost measurement under activity-based costing, International Journal of Quality & Reliability Management, 15, 7, pp. 719-752.
  92. DOI: 10.1108/02656719810218202
  93. Turrini A. (2002), Lo studio di casi come metodologia di ricerca in economia aziendale, Azienda Pubblica, 1-2, pp. 67-85.
  94. Tuzzi A. (2003), L’analisi del contenuto, Roma, Carocci.
  95. Tyteca D. (1999), Sustainability indicators at the firm level, Journal of Industrial Ecology, 2, pp. 61–77.
  96. United States Environmental Protection Agency (2012), A Framework for sustainability Indicators at EPA.
  97. Walls J., Phan P., Berrone P. (2011), Measuring environmental strategy: Construct development, reliability and validity, Business and Society, 50, pp. 71-115.
  98. DOI: 10.1177/0007650310394427
  99. Walls J., Berrone P., Phan P. (2012), Corporate governance and environmental performance: Is there really a link?, Strategic Management Journal, 33, pp. 885-913.
  101. White P. (2001), Sustainability through the market: making markets work for everyone, Corporate Environmental Strategy, 8, 1, pp. 16-23.
  102. Doi. 10.1016/S1066-7938(00)00090-7.
  103. World Commission on Environment and Development (WCED) (1987), Brundtland report.
  104. Yin R. K. (2003), Case Study Research - Design and Methods, in Bickam and D. J. Rog. Third Edition ed. Vol. 5, Applied Social Research Methods, Thousand Oaks, CA, Sage Publications, Inc.

Pier Luigi Marchini, Luca Fornaciari, The increasing relevance of managing costs of poor quality (CoPQ). The case of the mineral water industry in "MANAGEMENT CONTROL" 3/2016, pp 65-96, DOI: 10.3280/MACO2016-003005