Abstract ▼ AI-Helper

For years, it was believed that providing high-quality products or services was more expensive. during 1980s, management began to realize that in international market, higher quality products provide greater profit and increase the company's market share. Quality cost is a system that evaluate all t...

For years, it was believed that providing high-quality products or services was more expensive. during 1980s, management began to realize that in international market, higher quality products provide greater profit and increase the company's market share. Quality cost is a system that evaluate all the costs related to developing and managing the quality system, as well as the costs associated with defects or defectives. Quality cost system provides companies several benefits such as identifying opportunities for cost reduction and customer satisfaction and improving the communication among various levels of management. It is common that large portion of quality costs is usually unreported or omitted due to the ambiguities or difficulties of identifying and assessing the costs. These costs are called hidden quality costs and it is known that obvious costs of poor quality are the tip of the iceberg. In this theses, typical quality cos systems of Korean companies are investigated and a quality cost system that can evaluate the hidden quality costs as well as obvious costs of poor quality is proposed, An integration of the proposed quality costs system with the existing ERP system is also discussed.

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