International Journal of R&D in Engineering, Science and Management

7

Authors: Naresh Yadav, Pradeep Gahlot

The fast growing Indian economy is reaching a point where quality becomes just as important as quantity. However, the quality concept is still somewhat vague to many people and too many companies. One way to make it more concrete is to calculate quality costs. Quality cost is a measure of how costly it is for the organization to lack in quality in any way. This way is easier to understand quality and to see which areas should be prioritized in the quality improvement work. This thesis makes an attempt to map out the quality cost of an Indian company. Based on the calculated quality costs areas of improvement potential are suggested to the management. These way the company’s improvement efforts can be directed to where they make the best use. Successful running, sound economy and profitability of an organization is entirely depends upon effective control of non-quality costs generated in an organization. This analysis of quality cost data has been done by using pareto analysis and effects of different cost elements of quality costs. Quality cost contains conformance costs - Prevention costs and Appraisal costs, non-conformance costs – Internal failure costs and External failure costs. Total quality costs can be controlled resulting considerable savings. This thesis discuss how quality has an impact on the costs of goods and services in an organization