TQM Need and Application in the Billing Process

Abstract

This study investigates need for improvement in quality management by billing department, in the companies already certified for ISO and implementing measurement and reporting of cost of quality in the billing department. Its main purpose is to examine the gaps in the billing procedure that needs to close behind quality certification and the extent to which a firm can measure and report quality costs. A sample of 360 bills was selected at random from the department and contractor’s satisfaction for these bills measured. A questionnaire was developed and distributed to all the sample contractors. The most important uses of a quality cost report are: service cost information; quality cost planning; and targeting areas for process and service improvement. The main reason for not measuring quality costs is that the Indian construction industry, being always owner/client dominated, exhibits quality as the extensive use of non-financial measures and “quality” is not an inbuilt part of the firm’s culture. The contractor has to follow the directions of the client and scope of work and use of rights of contractors abide within the area limited by the client.

Keywords: Billing department, cost of quality, customer satisfaction, ISO certification