Quality Costs And Application In A Manufacturing Enterprise

Abstract

The concept of quality cost emerged as a result of both product development and process improvementstudies, following the products produced not meeting customer expectations. Measuring and calculatingquality costs is one of the important and necessary stages of the Total Quality Management program. Enhancing quality is seen as the fastest way to improve customer loyalty, decrease manufacturing costs andincrease productivity. While preparing initiatives to enhance the quality, the associated costs should betaken into account. Since consumer demands need to be fulfilled at the lowest cost possible. Seeing the costbenefit factor, as competitiveness, expense preparation should be made to improve efficiency. In this studydata were gathered from a vehicle spare parts supplier. The data collected from this firm's accounting departments and other divisions were used to analyze PAF and the Quality Ratio Analysis model, qualitycosts, system review, calculation of production prices, and monitoring method. As a result, the company'smanagement program has been calculated not to be effective in calculating the company's production costsaccording to the output assessments attributable to worker and machine costs. In this study it is concludedthat the measurement and analysis of the company's quality costs should be given greater importance.