quility costs

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quility costs
Iakovleva, Member, Professor, Russian Federation

Quality costs are the total sum of prevention costs, control costs, failure costs and criterion function of economic model of quality maintenance which is profit maximization of the company from minimization (economy) of quality costs. There is a possibility to consider optimization of quality cost as a distributive problem of optimum enterprise costs planning. Control cost and failure cost are interconnected and influence each other. Optimum distribution of prevention cost is presented as model of optimum planning and distribution of resources in manufacturing. Financial management methods (formation of an additional profit through costs reduction owing to efficient management according to vehicle of investments and disinvestments into company’s assets and quality management model which is self-balanced) are used to describe the influence of quality costs in enterprise’s management system.

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