Research On Automobile Total Quality Cost Model Based On System Dynamics Method

China's Automobile industry has developed more than 60 years. And China has become one of the biggest automotive manufacturing countries. From 2009 to 2015, China has been ranked the world's first car producer and consumer country. However, there is still a long distance between China and vehicle power. The quality problem of automobile products and high cost of quality have been perplexing China's automobile enterprise.In this paper, a system of total quality cost in automobile enterprises based on the background of automobile manufacturing enterprise and traditional cost of quality model combining with the life cycle cost is proposed. The proposed system provides a new idea for automobile enterprises to manage quality related cost.First of all, the basic concepts and models of cost of quality, life cycle cost and system dynamics are introduced. The main research contents, fields of applications and related literature review are summarized.Secondly, this article analyzes the status of China's auto industry and the condition of recall defective automobiles in China, as well as the difficulties faced by domestic auto companies in cost of quality management. And the total quality cost system for automobile enterprises is put forward based on cost of quality and combined with the life cycle cost.Then, the relationship between the elements of the total quality cost based on system dynamics is analyzed. Also a system dynamics model of total quality cost of car manufacturing enterprise is built using the Vensim software.Finally,apply the model to the product B of A car company. Using the method of simulation to study the relationships of the elements of the total quality cost and its influence on total quality cost and the profit of product B. The aim of this paper is to find out relationship of elements of total quality cost and give some guidance and suggestions to automobile companies.