Journal of Business & Economic Policy

Optimization of Costs Determined by the Application of the Quality Management System
Ion Ionita Ph.D; Florin–Aurelian Popescu Ph.D; Costel Șerban; Dr. Diamandescu Andrei

Abstract
The subject approached in this article concerns and optimization of costs so that integrated quality management systems could be applied. The optimization implies in this case that a limit should be ascertained for costs that are generated by the implementation and operation of the system so that such limit could be used as a basis for obtaining a maximum of benefit or, in other words, a minimum cost should be determined to which the business of the company can be materialized in such results that are foreseen upon the implementation of the system. In order that optimization could be possible, one must know such costs first of all, while corporate practice suggests that such requirement is difficult to fulfil. At present, circumstances are even more complicated, as most industrial corporations apply integrated quality systems in which, beside the standard ISO 9001, other two or several other ISO standards have been further implemented. In this case, the recording and optimization of quality costs becomes much more complex, less precise and more expensive. This is why cost optimization by mathematical modelling, which is both the most precise and the most complex method, is less affordable, meaning that business agents, in their practice, prefer a simpler method, that of comparing the performance of the organization with a reference standard (for example ISO 9001), which captures the difference to the performance before a quality system was implemented. In this context, authors suggest that the second method (i.e. that based on comparisons) should be selected. For its application, they have prepared a methodology for which feasibility was based on the results of a research made in several companies in Romania.

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