Research On The Relationship Between Quality Cost And Business Performance

With the globalization of economy, the market integration and development trend of quality, the product quality has become vital to the enterprise development. The product quality is not only related to the enterprise production efficiency and their own image, but also related to the benefits of the customer. And from the exposure of product quality problems in recent years, the product quality problems not only lower the consumers' confidence, but also directly have effect on the enterprise performance, and even lead to the enterprises' bankruptcy.In order to guarantee the product and service quality, achieve sustained development and enhance the core competitiveness, the enterprise must have scientific and effective quality management, meeting customer demand at the same time, reducing the material consumption, production costs and capital and improving the economic benefits. With the development of quality management theory and practice, a new discipline which called quality cost management emerged. The research of quality cost management has a history of 60 years. In 1978, China began the research of quality cost management. With the continuous development of quality management theory and practice, the exploration of the quality cost has made some achievements, but so far, the research of the relationship between quality cost and enterprise performance still stays at the qualitative level. The study of the extent of the impact and the impact path still need to learn. We can see that Chinese enterprises have not pay attention to the impact of quality cost on business performance.Good quality products and services will increase the cost of the enterprise, but it can reduce the costs of customer and improve customers'satisfaction, increase the sales of products and services, thereby increasing market share and competitiveness of the enterprises' products, which lead to the better performance.The purpose of this article is to study the path and the influence degree of the quality cost on the enterprise performance. The influence of quality and cost on enterprise performance is interacting. Good quality products and service can reduce the cost of customers, improve customers'satisfaction and improve sales revenue, so as to expand the enterprises'products market share and improve the enterprises'performance. The purpose of this article is to study the relationship between the quality cost and the enterprise performance. On the basis of theoretical studies on the cost of quality and business performance, this article does the analysis of the relationship between quality cost including its dimensions and firm performance, inspecting whether they have those relationships. Prevention and identification costs have positive effects on the company's current performance and long-term performance. And their effects on the long-term performance are much noble. Internal costs and external costs of losses have reverse effects on the company's current performance and long-term performance. External quality assurance costs have positive effects on the company's current performance and long-term performance, but not significant, because the majority of our companies with little or no external quality assurance costs.This article is divided into six parts:the first part is introduction, which summarizes the research background, significance, introduces the research methods, the content and the innovative point.The second part is related theory of quality cost, including quality cost, quality cost management and studies of relationship between quality cost and enterprises'performance at home and abroad;.The third part is analysis on the influence path of quality cost on corporate performance. On the basis of the measurement of the elements of quality cost and business performance dimensions, this part analyses the mechanism and influence path of the quality cost on the business performance.The fourth part is the study design and research result analysis, through the correlation analysis and regression analysis by SPSS, summing up the problems in quality cost management.The fifth part is the improvement on quality cost management, putting forward the suggestion from the consciousness, system and the practical levels.The six part is the summary, giving the main conclusions and pointing out the limitation of the study, at the same time indicating the future research.