Improvement and Application of Quality Profit Analysis Model

There had been many researches about the best quality cost in the world. Early research generally focused on the cost of quality. They thought that the cost input would increase and the failure cost would go down with the quality level rising. So they thought the point of the lowest cost was the best quality level. Because customers require better product quality and companies want to achieve the greatest efficiency in the modern competitive market. It\´s necessary to combine quality cost with quality revenue and establish mathematical models on the basis of the relations of quality costs or revenues and quality levels and finally consider the quality profit as the final criterion to select the best quality level. The quality profit model in this article overcomes the defects in traditional models that seeing the lowest total cost as the best decision and the defects in the "zero error" theory that seeing "q=1" as the best quality level and improves the relationship between quality cost and quality level. This model, better in line with total quality management (TQM) in modern production environment, can guide the total quality management more efficiently