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TOTAL QUALITY COST MANAGEMENT AND CONTROL

Quality is cost?!
Quality creates profit?!
The traditional quality concept considers: good quality must lead to high cost, and cost should be the lower the better. But is this true?
A world authoritative consulting company’s research outcome shows: better quality can lead to better operation performance. How to explain this problem?
This course may help you solve this problem.
Total quality cost management offers the tool of currency measurement, it shows the cost and benefit of quality in a language that everyone in the company can understand, and it establishes a systematic management method to continuously measure, analyze and improve the costs derived from quality.

Training Objectives

To understand the concepts and strategic significance of quality and cost
Command the account structure and accounting method of quality cost
Understand how to plan, control, analyze and report quality cost management and its improvement skill
Command the method and skill of establishing a quality cost management system

Training Attendees

General manager, factory manager, operation manager and related middle and top level managers
Quality manager, quality management staff
Data accounting staff and financial staff


	Training Outline

	Foundation of quality management
	What is quality?
	Concept of differentiated quality: small Q, medium Q, bit Q and operation Q
	How to effectively integrate quality, consumer satisfaction and company strategy
	Structure of quality cost
	What is quality cost?
	Logics of quality cost classification
	Basic structure of quality cost: prevention, identification, internal loss and external loss
	The philosophy of quality cost
	Quality cost curve
	Strategic quality cost model
	Change of quality cost loss in the dimensionality of quality control point
	The quality cost of accepted products
	Discuss and understand: Do it right the first time, quality is free
	Quality cost management
	Quality cost management and its target
	Several quality cost management patterns: quality cost approach, process approach, product approach and quality loss approach
	Quality cost management process
	Quality cost management system function division
	Quality cost subject set up
	The structure of the tertiary subject
	Common subject of prevention cost
	Common subject of identification cost
	Common subject of internal loss
	Common subject of external loss
	The VDA standard’s requirement on quality cost subject
	Quality cost data management
	The obtainment of quality cost accounting data
	The obtainment of quality cost statistics data
	Five methods on quality cost data calculating
	The ABC method of quality cost

	Collection of quality cost data
	Quality cost analysis and reporting
	Analysis on quality cost arrangement diagram
	Analysis on quality cost index target
	Analysis on quality cost structure
	Analysis on quality cost economic index
	Analysis on quality cost trend
	Quality cost responsibility department
	Quality cost reporting setting
	Quality cost plan and control
	The contents of a quality cost plan
	Steps on developing a quality cost plan
	Adjustment principle of a quality cost
	The determination of a quality cost budget
	Daily control and assessment of quality cost
	Quality cost improvement
	PDCA model that solves the problem
	Organizational form of quality cost improvement
	Quality cost improvement target setting
	Commonly used quality cost improvement skills and application case
	ISO/TR 10014：1998 “Guidelines for managing the economics of quality”
	Process and process approach
	Quality cost’s process approach and its calculation
	Consumer satisfaction’s KANO model
	The measurement of consumer satisfaction
	Process cost and benefit analysis
	Balance score card and strategy maps
	The establishment and defects of a quality cost management system
	Quality cost management system establishment process and skills
	The documentation of quality cost management
	Common quality cost defects during assessing and consulting
	Q&A