Trapping Quality Costs

by zikinurudeen
(Ghana)

How does a company trap the quality cost category that the accounting system of the company don't have access to?

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Jun 02, 2017
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Multi System Approach
by: Robert

Many accounting systems let you add a field. All you need is one field for each line item. Within in that field code I,E, F, P for each type of costs.

However accounting systems by itself don't catch all the quality costs. For example External Failure costs. How does the company capture the cost when your customer catches your defective product?

Most companies need a multi system approach to capturing the Quality Costs when they occur. These then all funnel into one system (outside the accounting system) that tracks and analyses the COQ. Make someone responsible for maintaining this system, providing reports, registering the costs (prevent double entry), etc.

For internal and external COQ tracking I recommend 8D Manager as you can code each line action and the software creates charts for the costs.

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