Hunan Letter Of The Company Quality Cost Management Study

The LCD color television market is becoming the fashion tidal. The CRT television enterprises are facing the brutal exterior competition environment. Therefore, enhancing the quality cost management will be helpful to increase the price competitiveness and extend the product lift cycle with a good economic efficiency.In this paper, the quality cost is defined as "all costs incurred for the sake of assuring and improving product quality, and all the losses incurred as a result of failing to meet the targeted quality levels, including preventive costs, identifying costs, internal failure costs, external failure costs".The Hunan Xinguang Company is inevitably influenced by the industry environment as a CRT company with 10% market share. In view of a considerable market and useful value during a comparative long-term, the Hunan Xinguang Company is able to decrease the product quality cost by implementing quality cost management and so that the high quality CRT with very favorable price can compete with the LCD products and extend its product life cycle. However, there are some problems in the quality cost management of the Hunan Xinguang Company, including no sufficient sense to the importance of quality cost management; unreasonable quality cost structure; the quality cost management out of line with the financial management; taking the technology specification as the inspection specification, etc.The paper proposed some specific advises for the Hunan Xinguang Company to strengthen the quality cost management, including introduction of the implementation system of all-round quality cost management; defining a best quality cost structure; setting up a quality cost accountant system; analyzing the reasons of unusual quality cost change; applying the quality tolerance properly, etc.