The Implementation of Cost of Quality (COQ) Reporting System in Malaysian Manufacturing Companies : Difficulties Encountered and Benefits Acquired.
Murugan Rasamanie, Kanagi Kanapathy

Abstract
This study attempted explored the difficulties encountered in the implementation of Cost of Quality (COQ) reporting among manufacturing organizations in Malaysia. A questionnaire survey method was used to find out the difficulties encountered during COQ implementation as well as the benefits obtained after COQ implementation. The findings of the study revealed that only 33 organizations (or 39.3%) out of 84 organizations had implemented COQ reporting system. Lack of cooperation among departments and difficulties in getting data were the top two challenges faced by these 33 organizations during the implementation of COQ. However, there are some benefits reported, after the implementation of COQ reporting in these organizations. The main benefits gained are, improvements in terms of the quality of product/service and the reduction of the company’s failure rate.

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