The Research of Quality Cost Efficiency with Considering the Implicit Cost Based on Non-parametric Analysis

The estimation of the quality cost efficiency is the important content of quality management, and implicit cost of quality is the important factor which impact quality management. In this paper, we divided the production processes into `n´ processes according with the theory of product life-cycle. We are the first to use non-parametric data envelopment analysis (DEA) method for estimating the quality cost efficiency of every process on the condition of considering the implicit cost. We innovated to put forward a method for dealing with implicit cost which is used the function of quality cost and variable weight theory. Examples showed that the method is rationality and effectiveness, as it utilizes an open system view of today´s modern business organization and the competitive environment in which it operates.