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Managing and Measuring Cost of Quality

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Managing and Measuring Cost of Quality

Page 1 of 13
Managing and measuring the costs of quality

Contents Page
Introduction of CoQ
Theories on CoQ
TQM in CoQ
Using systems for CoQ
Conclusions and recommendations
Bibliography or References

Introduction :

Quality is one parameter which is the unique way of making better the customer satisfaction. Not only this, it is also critical in the process of making lesser the manufacturing costs and also used to enhance the productivity as compared to what it actually is. Along with the initiative to improve quality one has to estimate the costs which will be incurred when the quality is achieved and will the same be relevant to the customer requirements. Thus the firm’s initiative would always be to bring in a solution of the least minimum cost for the same. Crosby, P.B. (1979), According to many theories of costing like that of Dale and Plunkett (1995) it was found out that quality costs ere that type of costs which were associated with the design, implementation, operation and maintenance activities of the quality management system. Thus this also entail the various cost of resources which are needed and also need to be enhanced and lowered for a better improvement along with the maintenance of the costs of system, product and service errors and rectifications .Along with this the major quality cost include the important cost like the non-value functions which are a part of the process of a quality product .When one sees these costs and does a reporting of the same, it is very important to critical to break the competitiveness of the markets by lowering these costs. .

Theories on CoQ
Many a cost models like the Crosby’s model have taken up quality as a need based parameter in any activity. Thus cost can also be defined as the sum of cost of utility of the function to the cost of non utility of the functions. Here the better terms could be the price of conformance which is the cost incurred when a product is made right all in the first time...

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