Cost of Quality Considering the Latent Variable: SMEs Sector of Bangladesh

摘要

The market domination is shifted from the producer to the customers. They have available alternatives to choose and buy products from the market at competitive price. Hence, defective products (if sold) that dissatisfy the customers, raise external failure costs and hold back the sustainable profit for the organization and consequently the organization is compelled to phase out form the market. This paper has dealt with identifying the factors that are responsible to the defective products basically in the production process. On this basis this paper has tried to develop a model by following a new approach considering the latent variable.