The role of improving product quality in reducing unused energy costs

Abstract

The production of products suitable to the needs of customers and low cost is the onlyway to remain the economic unit in the labor market, because the incompatibility ofproducts will lead to the emergence of untapped energies (human and material) to bearthe cost of the production units, which leads to high cost of the unit produced and thusreduce sales Although untapped energy costs are one of the hidden costs of externalfailure, improving product quality will lead to their elimination. The aim of the researchis to demonstrate the knowledge pillars of quality costs, as well as the role of improvingThe research was based on a key premise (improving the quality of economic productshelps reduce unused energy costs). The research draws on a number of importantconclusions. One of the hidden costs of external failure is the unused energy costs. It mayamount to 90% of the total cost of external failure, which is directly related to the numberof units returned from customers, which arise because of the customer's reluctance to buyproducts of the economic unit as a result of receiving products inappropriate for use. Themost important recommendation is to use the Taguchi quality loss function to calculate

Keywords

Accounting