Proceedings of the International Conference on Applied Science and Technology on Social Science (ICAST-SS 2020)

Quality Costs in Improving the Efficiency Production Costs

A Case Study in Beverage Company, Bandung, Indonesia

Authors
Riauli Susilawaty Hutapea, Savitri Nirmalasari Dewi, Carolina M. Lasambouw
Corresponding Author
Riauli Susilawaty Hutapea
Available Online 26 April 2021.
DOI
10.2991/assehr.k.210424.105How to use a DOI?
Keywords
beverage technic, production cost efficiency, application of quality costs
Abstract

Beverage Technic is a manufacturing company engaged in the machinery and food industry. Activities undertaken by Beverage Technic in the food and beverage division are processing the main ingredients of ginger and other supporting materials to become a finished product in the form of traditional instant drinks ready to be sold or distributed. This final project report focuses on applying quality costs in improving the efficiency of production costs in the Beverage Technic. This study aims to determine whether the Company has implemented and reported quality costs and whether the application of quality costs can improve production costs at the Company. The method used in this research is to use a descriptive analysis method with a case study approach by comparing and expressing the problems that exist with data collection through interviews, documentation, and observation. Based on the research result on Beverage Technic, the Company has not recorded quality costs consistently, so that costs incurred for product quality are difficult to track. Then the high costs for product quality make production costs too high. The quality costs incurred by the Company reached 4.03% of total sales.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference on Applied Science and Technology on Social Science (ICAST-SS 2020)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
26 April 2021
ISBN
978-94-6239-371-4
ISSN
2352-5398
DOI
10.2991/assehr.k.210424.105How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Riauli Susilawaty Hutapea
AU  - Savitri Nirmalasari Dewi
AU  - Carolina M. Lasambouw
PY  - 2021
DA  - 2021/04/26
TI  - Quality Costs in Improving the Efficiency Production Costs
BT  - Proceedings of the International Conference on Applied Science and Technology on Social Science (ICAST-SS 2020)
PB  - Atlantis Press
SP  - 535
EP  - 540
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210424.105
DO  - 10.2991/assehr.k.210424.105
ID  - Hutapea2021
ER  -