Effect of the Quality Costing System on Implementation and Execution of Optimum Total Quality Management

Abstract

Today, quality has become the best considered issue for manufacturers and suppliers. Hence, understanding thisconcept and its execution – related costs in the organizational level is a substantial and vital principle forachieving this goal. To ensure the success of the total quality management process, creating an official structurerelevant to this system and using suitable tools and techniques is necessary. Due to fierce national andinternational competition on one hand and fast change in technology on the other, analyzing, having a betterrecognition and applying proper discussions including total quality management (TQM) could prove useful andeffective. With the importance of establishing a quality costing system for the efficiency of a total qualitymanagement system taken into account, the present research deals with studying the effect of the quality costingsystem helps an organization with regards to identify designing and prevention costs, appraisal costs, internalfailure costs and external failure costs. This research is of applied type and was done as a case study at PARSKHAZAR INDUSTRIAL CO. In order to analyze the results, variance analysis (ANOVA) and Duncan tailedtest were used. Research result showed that the higher the specifying level of the quality costing system in anorganization, the more its effect on the optimum implementation of TQM.