Quality costs are a measure of all costs associated with achievement of product quality. Traditionally collection and analysis of quality related costs received less attention because of the lack o f understanding of the concept and difficulties in measuring & linking it with the organizations cost system.
- Highlights to all employees the important of product & service quality to business profitability.
- Form a basis for decision making.
- Identify area which need immediate attention & improvement
- Measure the effect of action taken
- Budget the expenditure for accomplishing the QM Program
For achieving these purpose an understanding of quality costs and a program for evaluating there is required.