Cost of quality system in passenger car plant: a methodology of implementation

Abstract

The purpose of this research is to provide methodological adjustments or procedures for installation steps and the implementation of a quality cost system, including adjusting the quality cost calculation model for the automotive manufacturing industry, especially passenger car factories. A literature review approach is used and pilot studies are chosen for empirical aspects of research to enrich the mix of qualitative and quantitative data. Although the literature review shows that many experts write similar research, adjusting the quality cost model is still recommended. The results of the pilot study explain that the implementation of quality costs at an early stage is considered sufficient until reporting. Further research is advised to practice tracking quality costs. Research starts from preparation to reporting on quality costs. The scope of research is limited to quality costs in the operational area (production). The methodology for implementing a quality cost system can guide organizations to get an internal view of quality costs. This research confirms that organizations do need to modify the available quality cost models according to the organization’s goals, needs, and environment. Thus, the simple models offered in this research are both valuable and contribute to quality economic literature.