Case Study Of Quality Cost Analysis In Iron & Steel Industry

With the furious competition within the enterprises, products profit gets increasingly lower, and quality cast management becomes more and more important. Quality cost is just like "gold in the mine", it can be much economized through thorough excavation with less quality management input. In the production process in iron and steel enterprises, due to the volatility of quality, it is difficult for iron and steel finished products and unfinished products to completely match the specified requirement. The loss because of disqualification and the controling expense to reduce the loss as well as to strenthen the prevention must exists. Therefore, the research of quality cost mangement in iron and steel industry has important practical signification.This article takes the enterprise technology pre-research project "Cold-rollers Quality Analysis and Evaluation System" as the backing, and the cold-roll factory of BY corporation as the actual research background, makes analysis about quality cost in iron and steel industry as follows.(1) Quality cost accoutingIn view of the factory's industry characteristic and its interior operation flow characteristic, the author built the quality cost subject, determined the data collection channel, accounted quality cost using statistically accounting method, and taking the quarter as the accounting unit, and distributed quality cost into every kind of product using activity based costing reasonably and high effectively, providing data foundation for quality cost analysis.(2) Quality cost analysisBased on the results of accounting, the author analyzed the trends of the changes in quality cost, the structure of quality cost, the quality cost of every kind of product, the loss cost, and in view of the analysis, several recommendations were advised. Because of the considerable quality cost owing to raw materials, we accounted the main quality cost of suppliers and caculated quality cast performance index takeing one of the main products in cold roll factory as an example, and based on the results we compared and analyzed sevral suppliers.(3) Quality cost management evaluationThe author built an evaluation criteria system, evaluated the quality cost of the cold-roll factory using Principal Component Analysis and SPSS statistical software, in order to keep the level of the enterprise's quality management and quality assurance being understood, and examine the economic effectiveness.