Quality costing of an administrative process

The purpose of this paper is to describe a methodology for measuring “cost of poor quality” within an administrative process. The methodology provides primarily a process analysis tool, but it can also be used as a quality measurement technique and a platform for activity based costing. The methodology was developed in the Scottish Legal Aid Board ‐ a non‐departmental public body ‐ addressing the key administrative process of invoice payment. An initial pilot study was enlarged into a full evaluation which combined the quantification of “quality costs” using a novel cost model with the identification of process weaknesses as part of the “analysis” phase of a new computer system development. The paper addresses some of the general practical considerations in launching cost of poor quality measurement schemes.