An Analysis In COQ And The Research On Its Improvement In CTS

The concept of Cost of Quality (COQ) was brought up in the 50's of last century in the United States. It has implemented and argued for more than 50 years. But from the current status, many factories and enterprises are not using COQ to promote or improve their quality level. The real reason for that is the current COQ system is complicated to implement and it takes a lot of time and energy for accounting people, and it's not getting high attention from top management. So man y companies are using other tools for quality improvement, such as 6-Sigma and lean manufacturing, so having a simple system to promote COQ is very important.CTS as a US based company has more than 100 years history. Its Tianjin factory has been using COQ for 8 years, this dissertation did a thorough analysis of the current COQ categories and implementation status of CTS TJ, and then bring up a new concept of Critical Cost of Quality (Critical COQ) and Un-Critical Cost of Quality (Un-Critical COQ).The analysis method of Critical COQ is through comparable analysis and other statistical method to compare the old method with the new method. The result shows that the new method can be used to replace the old system for quality improvement, as it has a lot of advantages, it's easier to implement in the company. At the same time, it also introduces the implementation steps and method in CTS TJ.As it's a simple method, at the current economical globalization situation, those domestic companies who want to win the others, quality will be the most important aspect they need to improve in order to get the business growth, the implementation of Critical COQ will be the key for success. Hopefully CTS Critical COQ management could be a reference as a starting point for quality improvement.