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The ideals of total quality view contradicts with the traditional prevention‐appraisal‐failure (PAF) model. The PAF model, based on the “higher quality‐higher cost” notion, fails to explain the “higher quality‐lower cost” premise of total quality. The purpose of this study is to examine the behaviour of quality costs and investigate the two contradicting views.

Based on the literature, a generic descriptive model is developed to examine the dynamics of quality costs and quality level over time. Through illustrative examples, the behaviour of quality costs is demonstrated and relevant implications are highlighted.

The proposed model supports continuous improvement regardless of the effectiveness of the firm's quality improvement programs. When the quality improvement program is highly effective, the “higher quality‐lower cost” phenomenon is observed; whereas, in a less effective quality improvement program, the authors observe the “higher quality‐higher cost” phenomenon, which still calls for increased improvement effort necessary for quality sustainability.

The proposed model explains well the dynamics of quality costs, however, it can be further enhanced by incorporating the dynamics of the effectiveness of the firm's quality improvement program and its relation to quality level and quality costs.

The proposed model is a useful tool especially for quality improvement planning and budgeting decisions.

Balancing between the two contradictory views of quality costs, this study provides a deeper understanding of the relationship of quality costs and quality level.

The purpose of this paper is to critically evaluate the contributions of six sigma methodology to the improvement of service quality. Since its development in the late 1980s, six sigma has been extensively applied in manufacturing and quasi‐manufacturing settings. This study aims to explore the challenges of six sigma in reaching a much wider field of application.

Utilizing the service quality framework, the authors assess the contributions of six sigma and explore its limitations when applied to services.

The relentless drive toward adopting six sigma to services has led both to a limited field of applications and to unrealistic expectations as to what six sigma is truly capable of achieving, particularly in knowledge‐based environments.

This research focuses on highlighting gaps in the six sigma as applied to services; further work is necessary to identify and develop new methods and to study their effectiveness.

The most immediate practical implication of this study is the call for the redesign of the curricula of six sigma black belts training programs; training in service quality is vital for the successful application of six sigma in service operations.

This study provides a fresh look into six sigma application to services by combining a thorough analysis of the service quality model with the in‐depth understanding of six sigma statistical concepts.