Study On The Quality Cost Management Of Modern Company

Nowadays, the operating surrounding of modern enterprise is morecomplex and variable, and the global marketing competition is moreintense than before, the every behavior of decision-makers will influencea company's strategy at any time. Strategic management acts as a newmanagement model, it has injected new vigor to modern company, so themanagement of quality cost produced. Both quality and cost are corerespects for a company to compete in the market, but thedecision-makers must make a decision, that is, the company shouldstrive which competent respect and in what scope, otherwise it'll fail.Quality and cost in some respect is unified, such as making profit, but insome respects, they depend on each other, for example, at some qualitymanagement level, the cost will ascend with the quality improved. Themanagement of quality cost is striving to find the rational quality levelbetween quality and cost in order to make the most profit. Since the quality cost has been brought forward in 1950s, althoughgreat progress has been made, the definitions of different nationalscholars are not uniform, one reason is that the gaps between differentnational background are very different, the other reason is that qualitycost is relate to every field of a company, it not only includes many items,but also the items are very complex, so managing the quality cost is verydifficult. Up to the day time, Julan's quality cost management model isbeing applied extensively, but because it had many shortcomings and hisbackground is very different from ours, so we must explore quality costmanagement model fatherly. Basing on traditional quality cost management shortcomings, thisarticle puts forward a complete quality cost definition, it extends frommanufacturing process to designing, purchasing, servicing and so on,from physical quality cost to immaterial quality cost, from nonconformityto over plus quality cost, and then, this article stated wholly how toproceed the quality cost, including establishing the framework of qualitycost management; how to forecast and plan; how to control effectively,calculate, assess, analyze and report; how to fix on the rational structureof quality cost and find out "the rational quality level " for the company'sdecision-maker through analysis. Finally, this article explained how tocheck the quality cost management system is valid or not throughqualitative analysis and quantitative analysis methods. In the wholearticle, the practicability is emphasized, this is one characteristic of thisarticle; the other characteristic is combinating qualitative analysis andquantitative analysis with demonstration analysis to study on the qualitycost management. The aims of this article are as following: First, correct the traditional quality cost definition and supply thereference for company's decision-maker to set up quality cost system; Second, find out the best way to low the cost and improve qualitycontinuously for the decision-maker; Third, supply the reference to fix on "the rational quality level"; Forth, deepen the quality cost management theory and model inexistence. The above are the final aims of this article.