Quality cost and quality cost system: An Application in a factory that implement total quality cost management

IIABSTARCTQUALITY COST AND QUALITY COST SYSTEM:AN APPLICATION IN A FACTORY THAT IMPLEMENT TOTAL QUALITYCOST MANAGEMENTPerle GEDİKMaster Thesis,Department of Business AdministrationSupervisor: Prof.Dr. Veyis Naci TANIŞJune 2007, 139 pagesNowadays, enterprises that would like to have competition advantage have to reduce thecost of production and to increase the quality of goods and services. Analysis of qualitycosts is an important aspect in implementing total quality management culture. Yetevidence indicates that manufacturing firms usually neglect this aspect, and a largeproportion of firms do not even report quality costs systematically. Quality-focusedfirms could use cost data for various purposes such as setting quality (and operational)targets and allocating funds for quality improvement. The purpose of this study is totake a general approach to quality costs and quality cost system. Applicability of PAF(Prevention, Appraisal, Failure) model in a food company is also research in this study.Key Words: Quality costs, Quality cost system, total quality system, quality.