Effect of the Quality Costing System on Implementation and Execution of Optimum Total Quality Management

  •  Azizi Jafar    
  •  Taleghani Mohammad    
  •  Esmaielpoor Fariba    
  •  Gudarzvand Chegini Mehrdad    


Today, quality has become the best considered issue for manufacturers and suppliers. Hence, understanding this
concept and its execution – related costs in the organizational level is a substantial and vital principle for
achieving this goal. To ensure the success of the total quality management process, creating an official structure
relevant to this system and using suitable tools and techniques is necessary. Due to fierce national and
international competition on one hand and fast change in technology on the other, analyzing, having a better
recognition and applying proper discussions including total quality management (TQM) could prove useful and
effective. With the importance of establishing a quality costing system for the efficiency of a total quality
management system taken into account, the present research deals with studying the effect of the quality costing
system helps an organization with regards to identify designing and prevention costs, appraisal costs, internal
failure costs and external failure costs. This research is of applied type and was done as a case study at PARS
KHAZAR INDUSTRIAL CO. In order to analyze the results, variance analysis (ANOVA) and Duncan tailed
test were used. Research result showed that the higher the specifying level of the quality costing system in an
organization, the more its effect on the optimum implementation of TQM.

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