Study On Enterprises’ Quality And Cost Management

Nowadays, under the condition of modern market economy, enterprises obtain competitive advantages mainly through supplying goods and services of high quality. Manufactures and customers have realized this and striven to improve quality by all kinds of ways. And also quality and cost management is becoming more and more important to company’s strategies. On the one hand, it is of great importance to improve quality to maintain competitive advantages for a firm, on the other hand, a company should combine quality with cost to acquire maximum profits. Currently, more and more enterprises have established Total Quality Management (TQM) system, however, there always exists confliction between quality and cost in their management process. It is still difficult for a company to keep balance between these two factors. Therefore, it is necessary and useful to explore ways of keeping balance between quality and cost for enterprises.Till now, TOYOTA RECALL event has already come to a pause. As we all know, TOYOTA has been an excellent or even great enterprises for a long time, famous for its high quality. As a matter of fact, TOYOTA has always been good at its management style and production technology, which sets good example for other enterprises. However, after this event, it has to face the challenge of Faith Crisis. And many people began to doubt TOYOTA quality myth, they wonder what reasons lead to this recall on earth. Then it is necessary for us to think about and reflect reasons about this recall not just regret or sorry. This paper aims to discuss theory about quality and cost management, and analyzes TOYOTA RECALL case on the base of the theory. In the theory part, the essay mainly focuses on the manners of quality and cost accumulation, also on the zero defect theory. In the case analysis part, it puts forward to overall management to improve TOYOTA quality and cost management from the two perspectives.This paper mainly includes six parts. In the first part, it introduces the background and study meaning of this paper, also the way and framework of study. The second part is about the theoretical analysis of quality and cost management, especially the analysis of quality and cost accumulation manners and zero defect production theory. The third part is the core part of this paper, it analyzes TOYOTA RECALL case on the base of the mentioned theory and puts forwards to suggestions to TOYOTA company’s management of quality and cost. The forth part is about the current situation especially the quality and cost management problems of our native auto industry, and in the subsequent fifth part, it proposes enlightenment to the quality and cost management of our native auto industry on the base of case analysis and theory statement. The last part is the conclusion one.The positive contribution of this paper is to combine the current hot debate of TOYOTA RECALL case with the theory of quality and cost management, and puts the relevant theory like cost accumulation and zero defect theory into case analysis. What is more, it provides directions to the future development of our native auto industry, on this point, the paper has a practical meaning. The drawbacks of this dissertation lie in the theory part. In sight of the current study situation about quality and cost management, it is hard to put forwards to some new and creative points for me, and I just sum the relevant theory up on the existed study results. Also it is impossible to gather all relevant materials about TOYOTA RECALL case, so it is unavoidable to be superficial and simple in the case analysis, which needs to be improved.