Quantity Cost Management Research On Hualong Reqing Group Changchun Corporation

Quality cost refers to the cost needed to ensure product quality to keep at a prescribed level. In modern enterprises the research on quality cost has got more and more attention.Hualong Groups Changchun Company is the first fully invested subsidiary corporation of Nissin Hualong Foods Groups (Hualong Groups in short) in another city, a very famous manufacturer and seller of instant noodles in Northeast China. Section of Quality Management of Changchun, branch of quality management of Hualong Groups Changchun Company, is in charge of quality supervision during the whole flow from the arrival of raw materials to the departure of finished product in Changchun Company. The operation mode follows the guide from Department of Quality Guarantee of the headquarters. Since all along quality cost has not taken its corresponding effect in the work of Department of Quality Guarantee, so there is no quality cost in assessment indexes and many subsidiary corporations have not attached importance to quality cost or calculated it. Hualong Groups Changchun Company also has not paid attention to the research on quality cost. At present there is no overall analysis on if quality cost management is reasonable and effective or not. Quality management is improved day by day, so the research on quality cost has been placed on the order of the day.This thesis first carries out a statistic calculation and analysis on quality cost data of January-June 2005 in Changchun Company based on the mode of quality cost management of Department of Quality Guarantee, working out average monthly quality cost 33,323.00 rmb. It finds out that there mainly exist three problems on quality cost management: 1. Structurally, the classification of all the items in second subdirectories is not correct; 2. After an analysis on the classification of second-order items, it finds out the calculation mode classification of quality cost is not integrated, only some blurring items, which will directly affect the amount of quality cost; 3. Based on the statistic data of quality cost of Changchun Company, it finds out the proportion among every quality cost is quite unreasonable. The proportion of the constitution of quality cost in Changchun Company in the first half year is Prevention Cost: Appraisal Cost: Internal Failure Cost: External Failure Cost=0.5858:0.0654:0.3402:0.0086, which is not in conformity with the proportion theory of the best constitution of quality cost put forward by Doctor Zhu Lan, a well-known quality management expert.