QUALITY COST FLOWS IN MANUFACTURING COMPANIES

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.