On Intra-Relationship of Quality Cost and Quality Improvement

Based on the essential of enterprise competition and the concept of quality cost, this paper revealed the causality between the quality improvement and enterprise performance. The effect of non-value-added activities due to the poor quality and waste on the financial performance is quantatively analyzed, the contribution of quality cost to quality improvement and the realization of the objectives of enterprise is discussed; and the system for quality cost management is preliminarily established.