Before we look closer into the subject, first we must look at exactly what is meant by quality and cost.
Quality is the totality of the attributes of a good or service that meet the requirements of the buyer or customers. The materials which make up the product, the design and the engineering of the product, product performance, reliability and durability are all important characteristics of the "quality package", which ultimately influence customers to buy a product and repeat-purchase It. (Pass 1995)
Cost is the expenditure upon resources incurred by a firm in producing and selling its output, Each cost is a charge against revenues and profits for the use or consumption of resources during a trading period. Cost can be classified along the functional lines, distinguishing between production, selling, distribution, administration and finance costs. (Pass 1995)
Quality is a term we use to signify excellence of a product or service.
Cost per Megabase of DNA Sequence (Why biologists ...
English: Customer satisfaction rating scale
English: A business ideally is continually seeking...We think of a quality product, for example a B.M.W. motorcar. We know its well designed, well built and will therefore last a long time. If we think of car of being low quality, we think of something like a basic model type of Citroen or Fiat, with its flimsy panels, cheap components and low specifications.
The quality hotel is denoted by the internationally recognised star rating system, i.e. a 1 star hotel will provide the most basic of comforts and low on hygiene, and a 5 star hotel will provide the most comforts and services. We can immediately recognise then, by simply looking at a hotel's star rating how good it will be and how good of a time we will have if we stay at the hotel.
Total Quality Management (TQM) is an organisational process that actively involves every function and every employee in satisfying customer's needs,