Research On Quality Cost Management Of Fuel Ethanot Project Of The COFCO Biochemical Zhaodong Company

Quality costs are part of the cost, including the cost of ensuring quality ofproducts or services, product failure and loss cost. Quality cost management is anassurance system to ensure product and service quality which is applied inenterprises by controlling the quality of the overall cost, it refers to a set of activitiesassociated with product quality cost, and these activities take advantage ofdepartments and personnel utilization and quality of corporate functions related.Although COFCO Biochemical Zhaodong Company has implemented qualitycost management, but it does not establish the appropriate quality cost managementorganization and quality cost management system, resulting in the company’s qualitycost management not able to play its due role. The quality cost management researchof COFCO Biochemical Zhaodong Company’s fuel ethanol project is to discoverproblems, analyze problems and solve problems with fieldwork, and linking thetheory and practice with the quality of economic philosophy. Firstly, The quality costmanagement research of COFCO Biochemical Zhaodong Company’s fuel ethanolproject introduces the research background and significance, with the deepeningenergy crisis, the competition among fuel companies increasingly fierce, andcompanies wish to improve their competitive position, in order to achieve this, theyshould do two things: one is to improve the quality, and the other is to reduce theircosts. So it is absolutely necessary to study the company’s research quality fuelethanol project cost management. Secondly, by analyzing the present situation ofquality cost management in Zhaodong fuel ethanol project, there are many problemsexisting in the quality cost management. For example, project managers do notestablish a correct concept of quality costs; the lack of scientific methods to predict the quality and cost accounting; proposed solutions of quality cost control do notmeet the status of the company combined with cost management theory; they do notfundamentally against the proposed causes of quality costs solutions; and thecompany’s financial and other functional departments do not provide enough supportand cooperation to the quality cost management. Further, according to the existingproblems, we proposes the quality cost management plan in nature, including thethoughts and measures of balancing quality cost structure, controlling preventioncost, and reducing appraisal costs. Finally, to ensure the quality cost management ofZhaodong Company COFCO biochemical fuel ethanol project, the company shouldestablish the quality cost management system, strengthen the maintenance of thesystem and establish the cost quality assessment of fuel ethanol projects.Aiming at the current situation and problems of COFCO BiochemicalZhaodong Company’s fuel ethanol project, this paper builds a quality costmanagement system that matches the project. By introducing and maintaining thesystem, enables managers to implement quality cost management measures inaccordance with the actual situation, and to product quality situation makes qualitycosts greatly reduced with product quality ensured, improving the project benefits.At the same time, this paper carries out quality cost management practices of theproject by using quality cost management theory and total quality managementtheory of lean production, the cost of quality management practices carried out theproject. Trying to carry out the quality cost management study of the project’scurrent problems will be important for the company to implement a low-cost strategy,also helps to improve operational efficiency and long-term development of thecompany.