Quality Costs in Improving the Efficiency Production Costs

Abstract

Beverage Technic is a manufacturing company engaged in the machinery and food industry. Activities undertaken by Beverage Technic in the food and beverage division are processing the main ingredients of ginger and other supporting materials to become a finished product in the form of traditional instant drinks ready to be sold or distributed. This final project report focuses on applying quality costs in improving the efficiency of production costs in the Beverage Technic. This study aims to determine whether the Company has implemented and reported quality costs and whether the application of quality costs can improve production costs at the Company. The method used in this research is to use a descriptive analysis method with a case study approach by comparing and expressing the problems that exist with data collection through interviews, documentation, and observation. Based on the research result on Beverage Technic, the Company has not recorded quality costs consistently, so that costs incurred for product quality are difficult to track. Then the high costs for product quality make production costs too high. The quality costs incurred by the Company reached 4.03% of total sales.