Research On Quality Profit Analysis Model

At the earliest stage, the research on quality cost was managed by American quality experts, A.V. Feigenbaum and J.M. Juran, who started studying and put forward quality cost theory model in 1950's. Henceforth, the domestic and international scholars studying quality cost widely based on their model. However, these traditional quality cost analysis model almost focused on quality cost, thinking that the prevention cost increased with the quality improvement, and the failure cost decreased. Therefore, many experts trusted that a best quality state existed. When the quality reached this point, the total quality cost was the lowest and the quality cost management project is superior.With the development of society and technology, the market competition becomes more fiercely. Customers have a higher requirement of quality. Producers attach more importance to quality management. Traditional quality cost model is no longer adapted to modern business environment. As a result, the concept of the quality economy appeared. The operation of the quality funds includes input and output. Quality cost is input and quality revenue is output. The difference between them is quality profit. Quantity cost neither reflects the result of the quality management accurately nor replaces the quality profit. Also, it can not provide the right information for the business enterprise, sometimes, causing wrong judgment.Under modern market competition, considering customers'requirement of product or service quality and the enterprises'goal of value maximization, this text introduces quality revenue. Combining quality cost and quality revenue; it discusses the relation of quality cost or quality revenue and quality level and established quality profit model, which consider quality profit maximization as standard to select the best quality level. Taking the local system products of ZX company'as an example, the text applies the quality profit model and analyzes it, proving that the best quality level is neither 100% nor the point when the total quality cost is the lowest as traditional model said. The quality profit model overcames the weakness of considering the lowest total quantity cost as standard in traditional models and considering 100% as the best in "The Zero Defect" theory, and revises the relations among quality revenue, quality cost and quality level. This text applies true data to analyze traditional model and quality profit model, proving that quality profit model is consistent to the actual circumstance of quality management in modern producing environment completely, and guides the business enterprise'quality cost management more effectively.