Impact of poor quality cost in automobile industry

Abstract

The present techno-economic scenario is marked by increasing competition in almost every sector of economy, strategy, quality, productivity, profitability and competitiveness. To maximise the profits of an organisation, expectations of customers are on the rise and manufactures have to design and produce goods in as much variety as possible to cater to the demands of the customers. Thus, there is a challenge for industries to manufacture goods of the right quality and quantity, at the right time and at minimum cost for their survival and growth. The cost of poor quality would help in analysing the operating costs for effective and profitable business management. This paper examines the market-oriented aspects of the cost of quality using data from the Indian automotive industry, graphical analysis of impact of quality cost, study of the relationship between unit cost and economies of scale, experience curve effects, and imputed cost of quality in a specific context.