Effects of Conformance Costs Over Non-Conformance Costs

The purpose of this study is related to the importance of estimating cost of quality to decrease the quality related problem areas and to identify the objectives behind cost of quality measuring and reporting. In the present competitive global environment, it is difficult to sustain a competitive position since it requires discovering hidden cost of poor quality that may make the businesses unsuccessful. Food sector in Pakistan has been neglected in terms research efforts made on quality costing measurements. Present study is planned to observe the impact of conformance over non-conformance costs, sales turnover and the overall profits of an Ice cream maker organization known as 'Walls'. Poor costs of quality (non-conformance costs) can only be eliminated if located earlier otherwise poor costs of quality would be a hindrance in maximizing customer satisfaction and may leads towards manufacturing and design loss. However reduction in costs of poor quality can only be achieved by focusing on customer orientation.