Research On The Quality Cost Model Based On Customer Satisfaction

Quality and cost are two crucial factors of an enterprise core competitiveness. However, enterprises must set the customer satisfaction as the starting point if they want to be strong performers in a fierce match in such a customer-oriented market competition. How to achieve the highest quality level with the optimal quality cost and get the best fusion to realize the customer value and enterprise benefit have been the key point of both business circles and academic circles.The present research on the quality-cost model carried the division from the enterprise aspect, and what’s worse, they didn’t take the recessive loss cost caused by the custom dissatisfaction into consideration, such as the decline of the corporate reputation, the decrease of the customer loyalty and the market shares. After a thorough analysis of the disadvantage of traditional quality cost model, this paper put forward the quality cost optimization model based on custom satisfaction, which can provide much effective guidance for enterprises to make the prediction and control of the quality cost.Firstly, this article analyzes the disadvantage of the constitute of traditional quality cost, based on which I list the investment of market survey, the appraisal charge of the raw material or the components and parts and the hidden loss cost caused by the customers’ dissatisfaction with quality defects such as the loss of enterprise reputation and customers as the crucial constitution factors of the quality cost. And then based on the customers satisfaction this paper puts the quality cost into visible quality cost and hidden loss cost.Secondly, in order to make up the inaccuracy of the description of the relationship of visible quality cost and quality level caused by the pure exponential function or linear function, this paper creates the gray linear regression model of the visible quality cost to excavate the regulation of quality level and dominant quality cost based on the gray system theory with reference to gray relation analysis and GM(1, 1) method.Then the article defines the hidden loss cost from the aspect of opportunity cost. It is considered as a potential revenue loss caused by customer dissatisfaction due to quality problems, then enterprises are unable to achieve the optimal sales growth of the whole industry. So the paper puts forward the hidden loss cost calculation formula based on customer satisfaction degree and analyzes how to control the hidden loss cost according to this formula.Finally, this paper applies the above model to CA Motor Corporation, and verifies the accuracy and applicability of the visible quality cost model with practical data, which will provide support for the company to predict and control visible quality cost. Then through the analysis of CA company customer satisfaction assessment process, this paper finds out the key factors to improve the overall customer satisfaction to reduce the hidden loss cost.