A conceptual framework to eliminate internal cost of poor quality in the Zimbabwean gold mining industry

Abstract

The cost of quality consists of cost of conformance and cost of non-conformance referred to as cost of poor quality. To simplify, cost of quality equals to cost of conformance plus cost of poor quality and in this study the focus is on cost of poor quality. Gold mining organisations in Zimbabwe have the potential of saving USD16 million through the use of an appropriate cost of poor quality framework to eliminate the cost of poor quality. The main objective of the research was to develop a conceptual framework on how to eliminate high internal cost of poor quality that is impeding competitiveness in the Zimbabwean gold mining industry, since the literature review revealed that currently there is no suitable framework to meet the stated objective. Despite the industry having implemented various systems such as International Organisation for Standardization based systems, the research revealed that the Zimbabwean gold mines are still experiencing high internal cost of poor quality. A survey was used to collect data using a cross-sectional method from the 367 questionnaires distributed among a population of 4475 within the ten participating largest gold producers in Zimbabwe. The results that were analysed using the Exploratory Factor Analysis, Confirmatory Factor Analysis, experts’ feedback and Pareto technique revealed that 19 out of the 40 cost of poor quality variables identified from literature contribute 86% of the total cost of poor quality in the Zimbabwean gold mining industry. The developed framework focuses on eliminating the 19 significant cost of poor quality variables through three critical interventions of: 1) Developing effective cost of poor quality policy and procedures 2) Training and developing a work-force that has adequate knowledge and expertise in quality management 3) Active enforcement of cost of poor quality policies and procedures. The developed framework emphasises the need for continuous identification of cost of poor quality variables, measurement of the magnitude of cost of poor quality and repeating the treatment interventions to eliminate residual cost of poor quality. The developed cost of poor quality framework could be significant if implemented since it has been noted that the strategy that will ensure the survival of gold mines in Zimbabwe is the one anchored on cost-reduction due to the instability of gold prices in the global market, inflationary pressures, lack of Foreign Direct Investment and other factors negatively impacting the industry. The implications of this study contribute to the existing body of knowledge as the study included both managerial and non-managerial employees and the perceptions of experts in the industry.