Research on Quality Cost Model (QCM) based on Quality Improvement Procedure (QIP) in an Auto-factory

With the implementation of continues quality improvement procedure (QIP) in Chinese self-brand automotive firms, the quality-related cost needs identified correspondingly. Quality cost math models could reveal the mathematical relationship between the quality level and quality cost which provides the possibility for research on the trade-off of these two conflicting objectives, as well as contribute to quality related cost reduction. The quality index during QIP is established via Pearson coefficient within warranty period, related quality cost is categorized to conformance and non-conformance cost on the basis of the PAF ingredient as well. Four traditional quality cost math models have been analyzed in this paper, and the regression analysis based on curve fitting process has been implemented for a self-brand automotive firm during its QIP. The results verify that the four quality cost models (QCM) show their excellent simulating performance, which can uncover the optimal quality level and target R/1000@3MIS guiding correct operations during its QIP. In addition, the most appropriate quality performance level index is aggregated and calculated by employing a subjective AHP method, which specifies the quality improvement target ad potential cost reduction value.