Better understanding of quality costing or cost of quality can lead to Essay

Better understanding of quality costing or cost of quality can lead to process improvement, improved financial performance, and enhanced customer satisfaction - Essay Example The concept of Total Quality management as defined in the paper illustrates how theoretical understanding of quality costing may help explain the actions of industries in practice. The fast growing economy of nations in different parts of the world has reached a point where quality becomes just as significant as quantity. Pike and Barnes (1996) argue that the low wages of the employees are shooting and at one particular point in time they will no longer be able to captivate foreign direct investments. To be well prepared, many companies from different nations should aim at the quality already prepared today. However, the quality knowhow is still somewhat not understood by many people and by many industries (Crosby 1990). One way to ensure that it’s more concrete is by calculating quality cost. Lighter and Fair (2004) define Quality cost as a measure of how expensive it is for the organization to lack in quality in any possible way. This however, contradicts the Crosby’s (1990) statement of free quality. This shows clearly that quality is never free but may be cheaper in the long run. The concept of free quality makes it possible to understand quality costing and to put into considerations which areas should be prioritized in the quality development work (Horch 2003). This research paper makes an attempt to bring out vividly the quality of cost of different companies. Based on the argument of the calculated quality costs areas of improvement are suggested to the management. This case study brings out clearly that the company’s improvement efforts can be channeled to where they make the best use. Experienced significance and obstacles when using quality cost calculations to define a quality development work in industries are then outlined (Thorpe 2005). Dale and Plunkett (1999) confirm that the company’s quality maturity is always relatively low. For this reason the development suggestion