The Application Research Of Quality Cost Management In H Company

The concept of quality cost has been proposed more than half a century,the theory of quality cost was sustainable development.Due to it is different from the production cost,the accounting and management of quality cost shows different characteristics from the traditional cost management.Concerning the optimization of quality cost and the control method of quality cost,it is different from the product cost management.The decrease of quality cost in company must be through the integrated application of a variety of management methods.According to the prevention in production process,process monitoring and continuous improvement,the overall level of quality control can be improved and the quality cost can be declined.Meanwhile,bases on the characteristics of quality cost,in order to reduce the lost cost,the investment of prevention cost is necessary.In daily work of management,the balance of the prevention cost and lost cost need to be serious considered.This paper mainly studies the management practices and experience on quality cost accounting and management in H Company.This paper in first introduces the background and significance of topics,reviewed the related theory and literature of quality cost,quality cost accounting and quality cost management.After the introduction of quality cost management background in H Company,the accounting method for quality cost has been presented.Then the management practices and experience for quality cost,the management method to reduce quality cost,as well as the management and balance for the prevent cost and lost cost have been introduced.The optimization of quality cost accounting has been discussed base on the ERP environment in H Company.Last and Least,H company carry out to evaluate the effect of the quality cost management,put forward the continuous exploration and improvement direction in future.The research conclusion of this paper is:Quality cost management is a system engineering,in order to become effective during work,a combination of variety of quality management methods is necessary,rather than a single management method have been used only.In the quality cost management,the whole cost need to be accounting base on ERP system,including the balance of prevent cost and loss cost,which can greatly improve the accuracy and the efficiency of quality cost accounting.The innovation of this paper is that,it introduces the quality cost management practice in H Company.Through the point of view for whole cost,the trade-off between prevention cost and loss cost have been considered,which offer the reference to implement quality cost management for other manufacturing companies.Meanwhile,this paper studies the automatic statistical of quality costs by making full use of the function in ERP system,which solve the pain point in current statistical difficult of quality cost,such as difficult,complex and inaccurate etc.