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Quality Costs?: using quality costing to promote quality improvement in a Chinese company
2007 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The fast growing Chinese economy is reaching a point where quality becomes just as important as quantity. The low wages of the workers are rising and one day they will no longer be able to attract foreign direct investments. To be prepared Chinese companies should target quality already today. However, the quality concept is still somewhat vague to many people and to many companies. One way to make it more concrete is to calculate quality costs. Quality costs are a measure of how costly it is for the organization to lack in quality in any way. This way it is easier to understand quality and to see which areas should be prioritized in the quality improvement work. This thesis makes an attempt to map out the quality costs of a Chinese company. Based on the calculated quality costs areas of improvement potential are suggested to the management. This way the company’s improvement efforts can be directed to where they make the best use. Experienced benefits and difficulties when using quality cost calculations to bring about quality improvement work in a Chinese company are then discussed. During the course of the study it became evident that the company’s quality maturity was relatively low. For this reason the improvement suggestions were aimed at stimulating a quality focus and forming a systematic way of working with quality improvement in the organization. The quality cost calculations thereby got the role as an eye opener with the target to give the motivation needed to carry out quality improvement efforts: in this case implement the values of TQM. The specific suggestions are discussed within the framework of Bergman & Klefsjö’s quality cornerstones. By taking on the values of TQM the authors believe that a substantial amount of the company’s quality costs can be reduced. The authors’ experiences from using quality costing in a Chinese company are that it can be a very successful method to influence the management of a company to give quality more attention. To use money to describe which impact quality has on business has been a way for people who never worked with quality matters to understand the benefit of working preventive and not only repairing problems that arise. Implementing the method as a complement and guide for the quality improvement work was however not possible since a structured quality organization that could act on the information from a quality costing system was not in place.

Place, publisher, year, edition, pages
Keyword [en]
Social Behaviour Law, Kvalitet, Kina, Kvalitetsbristkostnader
Keyword [sv]
Samhälls-, beteendevetenskap, juridik
URN: urn:nbn:se:ltu:diva-55151ISRN: LTU-EX--07/146--SELocal ID: c0b6e78b-6fb4-46e2-905d-82ad965b3021OAI: diva2:1028532
Subject / course
Student thesis, at least 30 credits
Educational program
Industrial and Management Engineering, master's level
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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