The Costs of Quality in Production Engineering: Business Development or Growth Inhibition?

Abstract Maintaining a strong market position is a significant challenge for manufacturing companies, requiring them to meet customer demands through high-quality products while balancing the associated costs. Proper quality management is essential but incurs substantial costs, particularly in terms of production maintenance and prevention. This paper explores the relationship between quality costs and business growth, emphasizing the need for manufacturers to constantly evaluate financial performance in relation to unit production costs and quality maintenance expenses. The study highlights that integrating quality into the production process is a key strategy for preventing business growth inhibition due to escalating quality costs. While investing in quality management can drive business development by improving product quality, customer satisfaction, and operational efficiency, poor management of quality costs can hinder profitability and growth. The findings suggest that strategic handling of quality costs can foster sustainable growth, whereas mismanagement may lead to competitive disadvantages.