The Implementation of Quality Cost as a Part of Total Quality Management In PT. Kusumatex

Abstract

Ginda Rahmita Sari (2004). The implementation of Quality Cost in Textile Company. A case study at PT. Kusumatex. Yogyakarta: Accounting Department, International Program. Faculty of Economics, Islamic Universityof Indonesia. Quality cost is one of many tools of Total Quality Management. It is used by management as a denominator of their performance. Quality cost programs provide warning against oncoming, dangerous financial situation. Quality cost programs lend credence to management's commitment of quality. PT. Kusumatex is considered as one of many middle class companies in Yogya that has quality cost programs as a part of their Total Quality Management program in order to maintain their performance and to be able to compete with other companies. Based on this reason the researcher has chosen the company as the object of the research. Based on the result that has been found by the researcher, the researcher came to the conclusion that the quality cost programs which are implemented by the company is taken from the traditional point of view. The performances of the company regarding the quality cost programs that have been implemented, was quite exemplary. The quality cost programs have been able reaching the optimal value. Whether the researcher's finding is considered relatively positive, the researcher still has some suggestion for the company. There should be some improvements for the form of the quality cost report. The company needs to identify the element of the quality cost in order to have better comprehension toward which activity that provides added value and activity that has no value and is therefore needed to be eliminated. The company should consider developing the program into total quality, which is zero defect approach. Total quality will provides more benefit for the company for long-term goal.