Analysis of Quality Cost Ratio and Quality Lost Ratio at PT. Nestlé Indonesia-Panjang Factory.

Abstract

Nestlé as one of the largest food companies in the world has implemented various systems to ensure the quality of the product. Zero waste is one of Nestlé’s commitments to give the best for their workers, environments, and consumers. There are several steps that must be done in order to achieve zero waste condition. The earliest stage is by analyzing the situation of cost related to quality at each factory. This will allow management to determine which sectors should get more attention in order to make the priority action more effective. This study is divided into four stages. The first stage is the data collection about cost component used for ratio calculation of cost related to quality. The collected data are converted into ratio. The purpose of making ratio is these that data are in the same unit so it will be easier to be compared. After that, these ratios are analyzed with Pareto diagram to determine components which become priority concern. Then the cost components considered as priority concern will be analyzed later to find the priority action that should be done to reduce the cost related to quality. Based on analysis performed, there are a lot of cost components that contribute to the cost related to quality. These are divided into two categories, namely quality cost and quality lost. After the data is converted into the ratio and analyzed with Pareto diagram, the cost components that have make the biggest contribution to the quality cost are monitoring analysis for finished product, raw material, environment, and investigation. For the quality lost category, cost components that have the biggest contribution are delayed released finished product, raw material, and packaging material. Efficiency in quality cost does not always mean that all component of cost that related to quality must be reduced. Sometimes the amount of certain component should be maintained or even added to reduce or prevent the other component. Based on the existing conditions and its data, priority actions will be more effective if focused on the delayed release of finished product.