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The Application of OWAs in Expertise Processes: The Development of a Model for the Quantification of Hidden Quality Costs

Author

Listed:
  • Manuel E. SANSALVADOR

    (Department of Economic and Financial Studies Miguel Hernández University - Elche (Alicante). Spain)

  • José M. BROTONS

    (Department of Economic and Financial Studies Miguel Hernández University - Elche (Alicante). Spain)

Abstract

This paper will introduce a fuzzy model for the quantification of hidden quality costs based on the aggregation of subjective information. The proposed model will be able to properly aggregate and summarize subjective opinions expressed by experts about the costs to be quantified, thereby achieving an adequate level of objectivity. To do so,a Probabilistic Uncertain Ordered Weighted Average operator is used, establishing as weighting factors both the confidence the organization has in each expert and, thanks to an original and specifically designed tool, the company’s position on Crosby’s well-known Quality Management Maturity Grid. Finally, in order to refine the results, the values obtained will undergo Contra-Expertise through Ordered Weighted Average Expertons. Once the theoretical model has been described, it will be applied to a case study: the quantification of the cost of loss of image in one insurance brokerage firm.

Suggested Citation

  • Manuel E. SANSALVADOR & José M. BROTONS, 2017. "The Application of OWAs in Expertise Processes: The Development of a Model for the Quantification of Hidden Quality Costs," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 51(3), pages 73-90.
    • Handle: RePEc:cys:ecocyb:v:50:y:2017:i:3:p:73-90
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    References listed on IDEAS

    as
    1. Zarghami, Mahdi & Szidarovszky, Ferenc, 2009. "Revising the OWA operator for multi criteria decision making problems under uncertainty," European Journal of Operational Research, Elsevier, vol. 198(1), pages 259-265, October.
    2. Zimmermann, H. -J., 2000. "An application-oriented view of modeling uncertainty," European Journal of Operational Research, Elsevier, vol. 122(2), pages 190-198, April.
    3. Sadiq, Rehan & Tesfamariam, Solomon, 2007. "Probability density functions based weights for ordered weighted averaging (OWA) operators: An example of water quality indices," European Journal of Operational Research, Elsevier, vol. 182(3), pages 1350-1368, November.
    4. Dong, Yucheng & Xu, Yinfeng & Li, Hongyi & Feng, Bo, 2010. "The OWA-based consensus operator under linguistic representation models using position indexes," European Journal of Operational Research, Elsevier, vol. 203(2), pages 455-463, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Quality Management; Quality Cost; Fuzzy Logic; Ordered Weighted Average; Case Study;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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