Examination of quality costs in terms of effects on profitability and an application in iron and steel operation

Recently, significant and rapid alterations in the economic field have compelled companies to become competitive. To provide an advantage in this competitive environment, enterprises pay particular attention to the quality which is one of the most advantegeous competition element. The importance of quality has been noticed with the increasing competition. The companies that perceived the importance of quality, and realized the requirement of an effective quality control system. This situation indicated the necessity of using quality management programs. Quality costs are the incurred costs in order to prevent errors that may occur before production in the enterprises and the errors that are detected during the production or after delivery to the customer. Quality costs, which have become more widespread in recent years, have a significant influence on the profitability and productivity of enterprises. The aim of this thesis is to examine the quality costs within the framework of Feigebaum's PAF Model in Ekinciler Demir Çelik Company, working in Iron&Steel Works Industry. "Case Study Method" has been preferred since it provides in-depth review and concrete data. The study uses a data of the years 2016 and 2017. Keywords: Quality, quality costs, The PAF model