Investigating the Relationship between Quality ManagementPrinciples, Conformance and Non-Conformance Cost of Quality, andOrganizational Performance

This paper examines the components of cost of quality (using the conformancecost of quality and non-conformance cost of quality method) in the context ofMalaysian construction industry. Cost of quality becomes an important issuefor organizations to consider since the cost of quality is one of the qualitymanagement practices (tools and techniques) to achieve the Total QualityManagement (TQM) in an organization. However, in the Malaysian contextthere is still lack of researches that seek to understand the best cost of qualitypractices especially in construction industry. This paper attempts to discuss theconceptual model between selective quality management principles,conformance cost of quality, non-conformance cost of quality andorganizational performance (OP) in the process of identifying the bestpractices for Malaysia construction industry. This study proposes four qualitymanagement principles and tries to investigate the effect of these principles onorganizational performance. Since the relationship between the qualitymanagement principles and organizational performance is widely discussed bythe previous researchers, therefore this study therefore aims to understand therole of conformance cost of quality as a mediating variable and nonconformanceas an intervening variable in selective quality managementprinciples and an organizational performance relationship. The outcome of thisresearch may offer a better outcome in the organizational performances namelyproductivity improvement and customer satisfaction.