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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
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