Abstract

The development of the business world requires companies to produce quality products. The company's efforts to support product quality will incur quality costs. This study aims to determine the management of costs arising from the company's efforts to support the quality of manufactured goods and to determine the application of quality costs in improving the efficiency of production costs CV. HANIMO. The method used is descriptive qualitative method, interpretive paradigm. Data collection techniques used were observation, interviews and documentation. The results of the study are known that there are three elements of the four quality cost elements contained in the CV. HANIMO. The three elements of quality costs are prevention costs, valuation costs, and internal failure costs, external failure costs not found in the company. The results of the study also proved that CV. HANIMO until now has not been able to identify, calculate, and manage the quality costs that exist in the company so the company does not know what types of costs incurred and whether included in the quality costs during the production process or not. If the CV. HANIMO identifies, calculates, and manages quality costs, supervision and checking activities within the company are applied specifically. And the costs arising from these activities can be classified in the cost of valuation, which causes a reduction in rework costs. The analysis can make the production costs of CV. HANIMO has become more precise in its calculations and can certainly be more efficient, because the cost of quality control in the company can be optimized.