Quality cost analysis of the automotive industry

In today?s market conditions, companies? competitiveness with each others are increasing. Companies which are wishing to take advantage under these conditions obliged to reduce production costs while improving the quality of products and services. Therefore, companies must monitor and analyse the quality of business costs and for controlling these costs they must measure them.In this study an established quality cost system of a company which operating in the automotive sector is considered. For the years 2007 and 2008, products which have the highest share in sales endorsement were determined. During the production of these products, error rate was calculated by using the statistical process control data which were collected for inner diameter. Improvement efforts have been made by examining relationship between quality cost and error rate. As a result of improvement works, recommendations to the company were made with the assessment of quality cost and process capability according to the situation before making improvements.