This paper examines the components of cost of quality (using the conformance
cost of quality and non-conformance cost of quality method) in the context of
Malaysian construction industry. Cost of quality becomes an important issue
for organizations to consider since the cost of quality is one of the quality
management practices (tools and techniques) to achieve the Total Quality
Management (TQM) in an organization. However, in the Malaysian context
there is still lack of researches that seek to understand the best cost of quality
practices especially in construction industry. This paper attempts to discuss the
conceptual model between selective quality management principles,
conformance cost of quality, non-conformance cost of quality and
organizational performance (OP) in the process of identifying the best
practices for Malaysia construction industry. This study proposes four quality
management principles and tries to investigate the effect of these principles on
organizational performance. Since the relationship between the quality
management principles and organizational performance is widely discussed by
the previous researchers, therefore this study therefore aims to understand the
role of conformance cost of quality as a mediating variable and nonconformance
as an intervening variable in selective quality management
principles and an organizational performance relationship. The outcome of this
research may offer a better outcome in the organizational performances namely
productivity improvement and customer satisfaction.
