The effect of quality costs on operating efficiency: An application in a furniture manufacturing business

In a competitive environment in the market, businesses aim to produce quality products at lower costs and make profits. For this purpose, businesses give importance to the costs that arise due to quality. Thus, it is desired to minimize possible errors that may occur before, during and after production. Quality costs also play an important role in terms of efficiency. In order to increase the efficiency of the enterprise, it is necessary to use materials, labor and equipment effectively. Thanks to the efficient use of materials, labor and equipment, the desired level will be achieved in terms of both quality and efficency in the products produced within the enterprise. In this study, a furniture manufacturing company operating in Adana is examined in terms of quality costs and efficiency by using the ''Case Study'' method. In this context, first of all the quality cost data of the enterprise for the years 2018 and 2019 were examined using the trend analysis method. Thanks to the data obtained, it has been determined which of the quality costs items of the enterprise spends more. Then, in order to examine the effect of quality costs of the enterpsrise on the productivity, the errors arising from the human, material and machine in the production process in the enterprise were examined. In this context, the error values of the enterprise for the years 2018 and 2019 were examined by the rate and trend analysis method and the error values were compared and how the quality level affected the productivity level was analyzed. As a result of the study, it was determined that while there was an increase in the costs of prevention and evaluation in 2019 compared to the previous year, there was a decrease in the costs of internal failure and external failure. This situation was reflected as a decrease in the error rates of the enterprise and an increase in the efficiency level of the enterprise was observed with the decrease in the error rates.