Research On The Development Of Quality Cost Based On S Company

Calvin(1985)said in the past more than a century,quality control has experienced the age of quality inspection,age of statistical quality control,age of quality assurance and age of strategic quality management,now is the fifth age: fully integrate quality into the entire business system,that is,integrate the quality management into the each of business processes,instead of setting the product pass rate as the only criteria.In the intensely competitive market,it requires companies not only the pursuit of high-quality output,but also fully considering the cost and high efficiency of input and output ratio,which is the law of business survival.Companied are supposed spend least cost,to meet market and customer requirements,achieving the most efficiency,and to achieve the maximization of enterprise profit.One important purpose of quality cost management is to help enterprises balancing accepted quality and quality cost,identify weak points of operation management,and to improve the weakness,achieving sustainable development the enterprise.S Company is the example of this thesis,after an fully study on quality cost researches domestically and abroad,on the basis of analysing the present situation of industry development and the competition environment,this paper uses the method of theory combining with practice,describes quality cost management organization structure in S Company,data collecting flow,comparing specific quality cost data from 2015 to 2019 in S Company with the average data in the same industry enterprises and data of benchmark company,analysis has been carried,gets two conclude: fist,the total quality cost in S Company is over high;second,the constructure of quality cost elements needs to be improved.Further findings through on-the-spot investigation,interview and work practice shows the possible reasons for this result are presented as follows: first,the new product development and design process is not rigorous enough;second,the quality control of the sourcing process is not perfect,third,the quality control of the production process is not fully comprehensive.Improving solutions based on product research and development design,spare parts sourcing process and production are designed,to solve the specific problems that have been identified,improvement plan on quality cost is advised in this paper.To guarantee the output of the scheme in S Company,some suggestions on relevant safeguard measures are put forward as well.One year after the implementation of the quality cost improvement measures,the results at the end of 2020 shows that the sales / quality cost ratio in S Company decreased significantly,and the constitution rate of quality cost factors tends to Dr.Juran’s optimal quality cost structure.Conclusion of the paper shows that by implementing effective improvement measures,adjusting the ratio of quality assurance cost and quality loss,enterprises can improve quality level of product,minimize quality cost,improve the inputoutput efficiency of operation,finally the economic benefits of enterprises is expanded.This paper contributes to fulfilment of the research and practical experience of quality cost management applying in the construction machinery industry,and other companies will get lessons and experience from S Company’s story,resulting in a better performance of COQ improvement in the future.