International Journal of Applied Engineering Research

Quality improvement decisions are viewed as the catalyst for substantial technological developments being made in the manufacturing sector. Quality cost is used as an indicator of economic health of an organisation. In order to improve quality investment decisions, this paper thoroughly reviews the quality cost literature and researches carried out by various researchers. It discusses different methods for obtaining quality cost data, their problems and remedies. A simplified methodology is proposed for collection of quality cost data in a manufacturing industry. An activity chart along with flow diagram is prepared demonstrating the procedure for implementation of quality cost system. This paper presents a complete understanding of quality cost illustrated by a case study in a manufacturing industry.