Quality can be defined as the ability of a business to satisfy their customers’ needs and expectations. Total Quality Management is defined as the way to prevent, appraise and improve the entire organization to increase the product quality. In order to systematically increase quality in an organization, there are different quality systems in use. One example is process management, which is to divide the activities of processes. Quality assurance aims to increase revenues and reduce operating expenses. It is therefore essential to identify the costs that arise from poor quality and which do not add value to the customers. In Swedish industries it is estimated that these quality deficiency costs lie between 10 and 30 % of a business' turnover. This study aims to identify costs of poor quality in a manufacturing business. Costs of poor quality are a major part of the organization’s net sales and are therefore important to consider. This study also aims to develop a model with metrics for quality costs. The study is based on a qualitative methodology and empirical data gathered from two observations and seven interviews with representatives from Nordic Waterproofing AB. The empirical material is based on information from three main processes; supplier process, production process and sales process. This study has resulted in a model for survey poor quality costs in a manufacturing business. The total costs of poor quality that could be defined at Nordic Waterproofing AB was estimated to 8 775 000 SEK, which is 2.93 % of the business turnover. This gives a total estimated cost of poor quality around 10-15 % of the business turnover for all the processes. Furthermore, this resulted helped to give Nordic Waterproofing AB an indication of where these cost incurred and recommendations for further work with identify poor costs of quality.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hh-18993 |
| Date | January 2012 |
| Creators | Engdahl, My, Carlsson, Magdalena |
| Publisher | Högskolan i Halmstad, Sektionen för ekonomi och teknik (SET), Högskolan i Halmstad, Sektionen för ekonomi och teknik (SET) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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