The Study On Quality Cost Management Based On Customer Satisfaction

The competition between companies becomes more and more intense in buyer’s market,companies should focus on customer needs to seize competitive advantage in such situation.The quality cost management taking customer satisfaction as the guidance has become moreand more important in this time.The quality cost management based on customer not only pays attention to thecompany value, but also focuses on the customer’. The quality cost management iscommitted to achieve success on two sides at the same time: one is to improve the quality ofproduct or service and reduce the company cost, in order to maximize the company value,the other one is to improve the customer satisfaction in order to maximize customer value.Therefore, the company should consider about both company and customer value whenimplementing the quality cost management, which means the company should meetcustomers’ demand when creating value. This article attempts to seek an effective way forcompany to implement the quality cost management from the perspective of customersatisfaction.First of all, by analyzing the defect of the traditional quality cost management, thispaper rethinks the meaning of quality cost management under the perspective of customersatisfaction and builds the framework of quality cost constitution based on the customersatisfaction. Secondly, this paper discusses the methods to construct the quality costmanagement model, and analyses the influence factors of quality cost according to thebusiness process, then defines the quality cost management variables and builds the systemdynamics model for quality cost management based on customer satisfaction. Thirdly, thispaper applies the system dynamics model on ABC company according to the company’sexisting data and management state, and provides help to managers understanding anddiagnosing the current problems existing in the management process by simulating themodel. Finally, in order to provide evidence for managers, this paper put forwardimprovement strategies in terms of supplier management, price making, employee training,scientific quality cost accounting, comprehensive quality cost management by analyzing theresult of strategy simulation on ABC company.