Study of Effect of Implementation of Cost of Quality System on Cost Management in Fajr Jam Gas Refinering Company

Continuous improvement in quality is one of the elements of being successful in modern competitive markets. In addition to quality enhancement, extra expenses and ineffective activities are eliminated by using CoQ system. So as a result, in addition to supply customer satisfaction, quality expenses and eventually product expenses can be reduced by using resources and facilities better and more appropriate and also by investing in preventative actions. With the aim of expanding practical knowledge about CoQ system, this research tries to study and inspect this system’s execution’s effects on management of expenses in Fajr Jam Gas Refinering Company, in the way that in addition to improving product’squality, by offering suitable solution, this system reduces quality expenses and helps superior managers in making decisions. In consideration of this company’s vital and crucial role as one of the important units in economical and industrial growth in society, it seems really important that the necessity of defining a specific purpose, aim and policy in improving product’s quality by using CoQ system is so clear and essential. In order to do this research with the aim of identification of topics of hidden quality expenses in organization for an one – year term, quality expenses paper work was sent to units in order to completing the information. After collecting data, calculations and necessary processes were performed on them and the quality expenses were recognized separately and brought out of every unit’s financial expenses.In this research correlation examination was used in order for testing theories. Furthermore software packages (EXCEL and SPSS) and descriptive statistics were used in order for analyzing data. The research’s findings indicate that there’s a negative correlation between prevention, appraisal costs and profit’s organization with inner and outer organization mistake costs that by increasing the efforts towards prevention and appraisal activities, inner and outer organization mistake costs decrease and by using CoQ reporter and informer system (quality expenses chart, proportions …) managing the expenses in order to deduct the mistake in organization and subsequently decreasing in total of costs and increasing gas sell income will be easier and more accessible.