Estimation Of Expected Cost Of Production With Poor Quality In Job Production

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Abstract

Cost and quality are among the most important competitive advantages of industry these days. The relation between these two is hotly debated in recent years. In this paper we categorized and calculated types of costs for poor quality in the batch production systems. Reworking costs, reduced value of poor quality products and retest of reworking products are analyzed in this categorization. Estimation of quality cost can suggest appropriate strategies in the field of assessment and preventive costs and generally reduce the costs. In the end, the proposed model was used in an armaments factory and the results were analyzed.

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