Analysis according to PAF model of quality costs in production operations: An application in automotive sub-industry

The reasons for the poor quality of the product produced or service offered and the cost elements associated with them are examined through quality cost analysis. Analysis results help businesses to control costs by ensuring that poor quality reasons are eliminated with the help of planning and prevention efforts. The aim of this study is to analyse the quality costs in order to shed light on managerial decisions in existing applications of an automotive supplier industry operation. To this end, general information about the 5-year (2011-2015) quality costs of ABC Automotive Sub-Industry operating in Düzce province was taken from the management of the enterprise, and the elements concerning the quality costs of the enterprise were analysed in the framework of PAF (Prevention-Appraisal-Failure) Model. In this framework, the quality costs of the enterprise were analysed with the use of rate and trend analysis. As a result of this analysis, it was found that the highest cost of quality turned out to be the internal and external failure costs over the years. It was concluded that the cost of internal and external failures was expected to be reduced over time, and more importance should be attached to those cost elements reconsidering prevention, evaluation and assessment costs. Keywords: Quality, Total Quality Management, Quality Cost Analysis, Production Operations.