Conceptual framework for managing quality costs at machine-building enterprises

Abstract

Perception of product quality as an economic category can help to improve the competitiveness of products and to increase the profitability of the enterprise due to the management of quality costs. Managing the quality costs at machine-building enterprises is an important task to ensure the effectiveness of the organization’s goals. The normative documentation and scientific papers about the management of quality costs are investigated. The definition of the concept of quality costs in accordance to the works of researchers and the requirements of regulatory documentation is studied. The author’s definition of the concept of «quality costs» is proposed, according to which it should be considered as the optimal cash costs for ensuring that the products meet the requirements during its life cycle and the satisfaction of all stakeholders. The analysis of the requirements of regulatory documents on the management of quality costs is performed. The experience of machine-building enterprises of Ukraine on the issues of ensuring the quality of products and management of quality costs is analyzed. It has been established that the use of modern methods of quality management and the application of the methodology of management of quality costs within the framework of a quality management system at machine-building enterprises of the automotive industry is a requirement of regulatory documents and consumers of products. The conclusions about the necessity of introducing the methodology of management of quality costs as a link of the quality management system for improving the competitiveness of products are made. The models of quality costs used at the enterprises around the world are investigated. The quality cost models are divided into four groups according to the basic principles. The conclusions are made on the use of the PAF «Prevention-Evaluation-Failure» approach as the main one in managing quality costs.

Keywords

• quality
• quality costs
• machine-building enterprises
• automotive industry
• managing of quality costs
• models of quality costs