An application of quality cost analysis as a tool for quality management

This research proposes a new method to integrate quality cost analysis with the Six Sigma approach. The method implements quality cost analysis to indicate the quality status and quality cost behaviour of the organisation, and to identify areas of quality improvement and quality cost reduction. To improve product quality and process capability, the Six Sigma approach is executed. The experiment was carried out in three parts. The first part is the decomposition of quality costs based on the P-A-F model, and the identification of the behaviour of quality costs using regression analysis. The second part is quality improvement through the define-measure-analyse-improve-control (DMAIC) process. In the final part, the proportion of cost according to the P-A-F model after process improvement is calculated and compared with the original P-A-F model. The results show that quality cost analysis can indicate the ineffective quality cost elements and help managers to understand the seriousness of their quality problems. The DMAIC process is found to be effective in reducing defects and improving the process capability.