QUALITY COST REPORT AND PRODUCTIVITY ANALYSIS IN PT LCG TELECOMMUNICATION AND TECHNOLOGY

Abstract

The current competitive business environment force companies to increase their competitive advantage. One way to do this is by improving quality. To improve quality while also removing unnecessary costs, company must keep track of its quality costs. However, due to lack of knowledge and resources, many small to medium sized enterprises (SMEs) weren’t able to enforce this kind of quality management. Thus, this research aims to analyze a small company’s quality cost and its productivity using quality cost report. This qualitative study on PT LCG Telecommunication and Technology will use vertical, horizontal, and discourse analysis in addition to using quality – productivity ratio calculation. The result of this study highlights the bad focus and attention on quality in the production process of the company. In addition, the results also indicated that the quality cost that can be found in Quality Cost Report Analysis affect productivity by affecting how many good quality product can be produced. Therefore, it is suggested that the company should adopt quality cost report. Although there are time constraints and some difficulties in gathering data, it is hoped that this research can be used by the company to increase the product quality and productivity by decreasing quality cost as well as used by future researcher as a basis for generalization to SMEs manufacturing companies in Indonesia.