Quality costs in the framework of total quality management: An application in manufacturing company

Today, businesses use quality as a factor of competitiveness. The concept of quality draws attention as a very important factor both in products and in the production process. In approaches such as Total Quality Management, the main focus is quality. As in every activity carried out in the company, the cost is at an important point in the studies on quality. In this context, quality costs are one of the important parts of the Total Quality Management approach. In the PAF Model, which is one of the quality cost models considered within the scope of Total Quality Management, quality costs consist of prevention, appraisal, internal and external failure costs. This study was implemented in a manufacturing company operating in the wooden furniture sector in Osmaniye. Case Study method was used in the study. The quality costs of the company for the first 6 months of 2020 and 2021 were examined. Company quality costs data were determined by interviews with senior management and business employees, observations made and examination of recorded documents. In the study, prevention, evaluation and failure costs determined in the relevant periods of the company were analyzed as a share of the total production cost and realized sales. As a result of the study, the increase in the prevention and evaluation costs of ABC Company reduced the internal and external failure costs. It has been determined that there is a relationship between the quality cost elements emerging in the enterprise.