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Cost of quality

Dears

In my quality department we have 5 person

3 persone is working on inspection ..so their cost is capturing while recording the result

but other 2 person working general prevention activty..so i can not cach any cost as they are not part of Inspection

So there is any possibilty is there to capture their cost to any QM order

Faisal

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3 Answers

  • Best Answer
    Sep 08, 2011 at 06:09 PM

    Dear Faisal,

    I beg your pardon, but I am not so sure what exact cost you want to capture? Whether the salaries of the personnel working with inspection department or you have some activity whose rates per hour or minute are known to you. If you could please explain the exact role of these personnel and logic of capturing cost.

    1. Conceivably QM order may not address this issue.

    2. You may think of using service purchase order in case of contracted hires. Settle their payments against service PO on QUALITY cost center.

    3. You may create these employees as vendor codes and can pass direct entry of the cost against QUALITY cost center.

    4. Have few words with your cost accountant in order to finalize where the exact effect should to reflect.

    Regards,

    Anand

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    • Then its nothing but the salary or payment that these persons receive. As per my understanding there are 2 ways to do this. Settle payment against service PO or settle it against creating vendor code. CO consultant can give you more insights about this.

      Regards,

      Anand

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    Former Member
    Sep 06, 2011 at 11:16 AM

    In KB21/KB21n you can do the same.

    You have to create activity type.Then there is one sending cost center & one receiving (in this case its Quality cost center)

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    • Dears sujit

      in this case sender cost center is Inspection cost center

      and receiving cost center is Quality cost center

      Pls verify above methode is correct or not

      Normaly KB21N we are using for Non confirmance cost recording/Failure cost

      Same methode can be used here also?..Pls verify

      Faisal

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    Former Member
    Sep 08, 2011 at 08:07 AM

    You can refer the concept of activity-based costing of controlling module.

    In my experience some company implemented those function for analysis of total quality cost.

    Regards

    Luke

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