The Study About Innovation Of Quality Cost Management And Its Realization Through Inforamtion Technology

Quality cost management is a branch of management science on how to identify and eliminate the quality cost and how to prevent and appraise the quality failure in organizations. From the conception emerging in 1930s, quality cost management had developed for about 70 years. With the development and implementation of the theory, the traditional quality cost management theory and its methods were not fit for the modern management, especially the new situations of quality management. In fact the modern quality philosophy has been changing silently with the widespread of Six Sigma management and excellent performance all over the world. The traditional adaptive and conformance quality will be replaced by the "excellent quality' and "zero defect'. Based on this kind of situations, traditional quality cost management faced the demand of self-innovation.The paper analyzed the shortage and failure of traditional quality cost management, compared it with the new study achievement and methods considering its internal management ideology and put forward that the traditional quality cost management must be improved. The creative quality cost management depended on the support of enterprise' information system and regarded the excellent quality as a starting point, aiming to establish a more practical management system with integrating the quality management, performance management and information management.By means of the practice of Six Sigma management, eliminating the poor quality cost has been proved to be a core target of enterprise's management and the base guiding quality management to be success. The paper analyzed and put forward the collecting methods to these poor quality cost based on the actual situations, that the traditional quality cost management take less attention to the hidden quality costs and the impacts from the quality failure to selling. The thought method of quality cost is very helpful to the accuracy of managerial decisions, thus the paper discussed the detail methods on suppliers selection and inspecting decisions based on the quality cost.The convergency between quality cost management and performance management is a basic condition for qulity cost management to reach success. Without the evaluation and assessment on performance, it will be very hard toestablish an atmosphere to launch the quality cost management around the enterprise. The paper discussed how to use the quality cost and quality improvement data as the input parameters, thereby discussed the methods on how to integrate the quality cost management and performance management.The convergency between quality cost management and enterprise's information system is another basic condition for qulity cost management to reach success. The failure of traditional quality cost management is on account of the high-cost data gathering and the bad-quality data. With the support of the information system, it is possible to track and gather the quality cost data dynamically and timely. The paper concentrated on how to establish the quality cost model based on the current information system platform and how to exchange the data among all of the managerial models.Finally, the paper discussed an example from Shanghai Mitsubishi Elevator Co., Ltd (SMEC) on how to establish the quality cost management system and how to use all of these methods mentioned above in the current ERP R/3 and realize the data integration.