Cost of Poor Quality Analysis for Automobile Industry: A Case Study

Abstract

The high competitiveness makes the quest for production cost reduction a constant in the market, but it is necessary to reduce costs without compromising quality. When a product is in the manufacturing and this has to be scraped, we have more cost than the raw material used, it is necessary to consider the manpower and operations, thus to calculate the cost added to the product. Continuous quality improvement is a key factor in the strategy for competitiveness. Quality cost is one tool, among many others, that can help in continuous quality improvement. Properly applying quality cost techniques is critical to these efforts. Initially, a complete quality cost study could provide awareness and guidance to a steering committee on what cross-discipline teams and improvement projects should be started. The cross discipline teams also can use quality cost special studies to help in focusing efforts. In this paper cost of poor quality analysis has been done using different techniques which are currently applying in automobile industry to assess quality cost.