Establishment of quality cost system in SCANCOM

HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES

SOLVAY BRUSSELS SCHOOL OF

ECONOMICS & MANAGEMENT

MBQPM5

DONG VAN TIEP

ESTABLISHMENT OF QUALITY COST

SYSTEM IN SCANCOM

MASTER FINAL PROJECT

MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT

Ho Chi Minh City

(2016)

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STATEMENT OF AUTHENTICATION

This final report has not been submitted for a degree or diploma in any other

universities. To my best knowledge and belief, the report contains no

materials previously published or written by another person except where

due reference is made in the report itself.

Signature of Student

Dong Van Tiep

Date: 23 April 2016

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ACKNOWLEDMENT

This is the final report for Master in Business Quality and Performance

Management – Solvay Brussels School of Economics and Management.

The aim of this final report is to establish the quality cost system in

ScanCom Vietnam. The report is the combination of practical experiences of

furniture industry and quality subject studies.

I would like to take this opportunity to thank our Managing Director – Mr.

Edwin Van De Sloot who has supported me in providing me the important

data in cost management and as well as strong support from him to the

team to make the program moved forward.

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CONTENT

1. INTRODUCTION .................................................................................9

1.1. Background........................................................................................9

1.2. The case of ScanCom .....................................................................10

1.2.1 Introduction to ScanCom................................................................10

1.2.2 ScanCom’s General Quality Management Process......................10

1.2.3 How quality performance is reviewed and measured in

ScanCom? ..................................................................................................11

2. COST OF QUALITY ..........................................................................15

2.1. Quality...............................................................................................15

2.2. History and Definition of Cost of Quality (COQ)...........................16

3. IMPLEMENTATION OF QUALITY COST PROGRAM IN SCANCOM:

...........................................................................................................22

3.1. Delimitations ....................................................................................22

3.2. Challenges/difficulties anticipated during the implementation of

Cost of Quality System in ScanCom: ......................................................23

3.3. ScanCom Goals for the implementation of Quality Cost Program.

...........................................................................................................23

3.4. Implementation steps for the Cost of Quality Program in

ScanCom ....................................................................................................24

3.4.1. Gain top management commitment...............................................24

3.4.2. Constitute the Quality Cost Team:.................................................26

3.4.3. Quality Cost Categories ..................................................................26

3.4.4. Data collection .................................................................................27

3.4.5. Collecting Quality Cost Data ..........................................................28

3.4.6. Quality Cost Data Analysis .............................................................31

3.4.7. Build up an improvement proposal plan ......................................32

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3.4.9. Kick-off Meeting for the Implementation of Quality Cost

System ....................................................................................................32

3.4.10. Quality Cost Training................................................................33

3.4.11. Periodic review of quality costs ..............................................33

REFERENCES

APPENDICES