A Collaborative Approach for Managing Project Cost of Poor Quality

Posted: 3 Jun 2004

See all articles by Teemu Malmi

Teemu Malmi

Aalto University School of Business

Pekka Järvinen

Aalto University - Industrial Engineering and Management

Paul Lillrank

Aalto University - Industrial Engineering and Management

Abstract

This paper presents a construct - a collaborative approach for managing project cost of poor quality. Changing project constraints makes it difficult or even impossible to utilize traditional cost of poor quality methodology in managing quality costs in project environments. The construct presented here modifies the root-cause analysis type of approach to manage the cost of poor quality by introducing the use of three prospective values and probabilities of occurrence in project ex-ante evaluations. An integral part of the construct is the way in which monetary values are determined through workshops. The results were obtained in a research project using the constructive research approach. The construct was created at Finnish Post, Hankkija-Maatalous and Nokia Networks and the validity was further tested at Valmet Paper Machines.

Keywords: Cost, Quality, Project, Constructive research approach, Action research

JEL Classification: M40, M46

Suggested Citation

Malmi, Teemu and Järvinen, Pekka and Lillrank, Paul, A Collaborative Approach for Managing Project Cost of Poor Quality. Available at SSRN: https://ssrn.com/abstract=554502

Teemu Malmi (Contact Author)

Aalto University School of Business ( email )

P.O. Box 21220
Aalto, 00076
Finland
+358 40 5100827 (Phone)

Pekka Järvinen

Aalto University - Industrial Engineering and Management ( email )

POB 9500
02015, Aalto 00076
Finland

Paul Lillrank

Aalto University - Industrial Engineering and Management ( email )

POB 9500
02015, Aalto 00076
Finland

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