QUALITY COST FLOWS IN MANUFACTURING COMPANIES

Abstract

Companies have increasingly focused their attention on quality costs. Therefore, raising awareness of this group of expenses is essential. This paper aims to present a survey on the topic of costs of quality management in manufacturing companies in the Czech Republic. This paper opens with a literature review that focuses on the existing cost of quality models and then focuses on empirical research results. Manufacturing companies represent the framework of this research. The research with a total of 159 respondents provides information about the real market situation. The aim was to determine the significance of costs and cost-effectiveness. The study's findings revealed that 73% of organizations quantify their quality costs completely, 21% of companies quantify their costs only partly (external costs), and 6% of companies do not. 36% of surveyed companies (42 companies) that monitor quality costs use some of the recommended models, mainly the PAF model. The research was confirmed by hypothesis 1 that companies that use some type of evidence cost of quality have lower levels of these costs.