Percentages of production costs for the total cost of quality.
The author, Jack Campanella, has worked in Development, Research, Standardization, and application of the Cost of Quality in the ASQ (American Society for Quality), hence he is considered one of the most important personalities in this topic in the field world.
In order to calculate the Base Business Unit (BSU) Various Productions (PROVARI) were defined as the components of cost of quality in the processes selected and evaluated their behavior over a period of three months, taking for it the last quarter 2011 to be of interest to address the analysis due to deviation of the costs arising from this quarter.
In order to create a working group to carry out the program and that most employees know and come to dominate the terms related to the calculation of the Cost of Quality, a seminar was held for all workers involved, where general aspects were treated calculating the costs of quality, objectives and advantages of calculating these costs, identification data provided by the information system of the enterprise and the system design to obtain all costs.
The inconvenience of the traditional quality cost account is dividing cost of quality only to three main groups: cost of prevention, cost of appraisal and cost of failure.
ACCOUNTING THE COST OF QUALITY BASIS OF THE ABC METHOD
Exact calculation of cost of quality is very difficult, because indispensible data should be acquired from different cells in enterprise, deliverers and customers.
The City of Austin, Texas, includes cost of quality as part of its overall TQM training program.
Exhibit 1 illustrates the use of a flow chart to diagram the process for recording journal entries and to analyze the cost of quality.
The private sector's cost of quality ranges from 20 percent in manufacturing to 40 percent in service industries.
Researchers from public accounting, industry and academia contributed to this study, which examines how the cost of quality
has been successfully measured, reported, analyzed and applied in both manufacturing and service environments.