Introduction of cost of quality reporting system at Vijai electricals limited

Abstract

There is today a noticeable interest in quality, on the part of both industry and society in general. There are several reasons for this great interest - higher demands for quality from customers, greater competition, demands for higher profitability. lt was hoped that this study will provide ideas for more effective work in dealing with product quality. Cost of Quality study undertaken at VEL has been with the aim of sensitizing the management/employees about the quality problems being faced by the company in a language best understood by them, that is in financial terms. It provides an opportunity to the management to look into the areas where there is scope of quality improvement and where wasteful expenditures can be cut down .The Cost Of Quality when fully implemented in organization on a regular basis provides a scale for continuous performance evaluation by quantifying quality improvements in terms of money saved.