Research on the Model of Quality Cost in CIMS Environment

One of the most important tools necessary for the successful implementation of a quality program such as ISO9000 or TQM is the cost of quality (COQ). This paper proposes a new model for the COQ, which captures the value of continuous process improvement in achieving economic operation. The model is given based on activity-based costing (ABC) method in this paper. As the application of computer is widely in many companies, firstly, COQ system structure is built in computer integrated manufacturing systems (CIMS) environment. Secondly, the function structure of the COQ accounting system is suggested. In the function structure the input and output relationship of information is shown between many sub-systems. Thirdly, the allocation method which uses two-stage procedure to assign quality resource costs is adopted when calculating COQ. Five important rules are described in this method. Finally, the new model of COQ was demonstrated through an application in a steel enterprise.