16. Models Used in Production Quality Management

In the organisational management, quality management occupies an important place in general and total quality management in particular. Such a concept is the essence of modelling the production quality. The most common models used for this are those based on the Taguchi technique regarding the continuous improvement of the quality of production and products. The variables taken into account are: “loss of quality” function; starting point of quality; ensuring the quality in production; verification of total quality, etc. Based on these variables, the function of the loss of quality must be optimised under the conditions of complying with some criteria such as: optimisation criteria; target criteria regarding the quality content, criteria to maximise the quality efficiency. Under these conditions, the econometric models are used particularly in the field of total quality management. In terms of econometrics, both the quality and non-quality products can be measured. This is because econometric models are developed separately for their product quality and non-quality. Such models contains an objective function to be optimized in terms of a set of restrictions for quality and nonquality.