The costs of quality -potential growth source for the entity performance

Saveta Tudorache and Anca Bratu

Manager Journal, 2007, vol. 6, issue 1, 132-136

Abstract: For the last 15 years, an increased number of entities have learned that the quality of the products must be designed prior their manufacture and that it is expensive, but not impossible, to control the product quality after the product has exited the manufacture line. Sellers must take into account the powerful competition, the alternative products and services, as well as their prices. It can be noticed that in the same period in several countries, for instance in Japan, the quality of the products has been improved concomitantly with the decrease of their prices. To cope with the domestic and external markets, economic entities from our country must manufacture qualitative goods at competitive prices. However, quality is not something that the economic entity brings in during a certain stage of the manufacture process or something that is automatically produced. In this respect, the USA have suggested the implementation of an operational mechanism where all the economic functions act together to assure the quality of the company's products and services, under the name: Total Quality Management- organizational environment which allows the calculation of reliable quality pointers needed by managers to fulfill the manufacture goals regarding high quality products and services at reasonable prices.

Keywords: Quality; cost; expenses; administration accountancy; quality pointers (search for similar items in EconPapers)
Date: 2007
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