Cost Of Quality Management System Diagnostics And Solutions

The concept of Cost of Quality (COQ) has been being developed for more than50years since it was brought up in the50’s of last century in the United States. Even there areready made templates for enterprises to establish the process of COQ with mature theory,however many companies still have difficulties to implement or effectively implement theCOQ management system. On the surface, there are lots of reasons such as the complexityof the company operation, less of participation of top management, or lack of the supportof a strong financial system, but the essential problem is poor implementation plan to fitactual situation without enough flexibility. To solve such problems, it’s necessary to use theproject management mechanism to run the program of COQ, accurately matched with thefeatures of the enterprise.As a company in transformation and merge stage, AOS met lots of unexpectedproblems upon implementation of CQQ management system. With the concept of CriticalCOQ, the difficulty in data collection was solved by only gathering the data for criticalitems which were determined in some way. Meantime, it took advantage in ensuring theefficiency of COQ management system with the appropriate quality cost accountingmechanisms. It’s demonstrated the advantage of the concept of Critical COQ used incomplicated operation environment by the case of AOS. As well it could not be denied thatproject management thinking method is another factor to ensure the COQ program wasimplemented successfully in AOS.It’s believable that the concept of Critical COQ and project management thinkingmethod will benefit for the implementation of Cost of Quality Management in variouscompanies. Especially for the companies within transformation or complicated operationenvironment, more valuable points will be created in this way.