Purpose: Economic optimum of quality is to find a balance beetween quality and costs of quality, therefore it is very important to monitor quality costs and economical indicators for valuation of cost effectiveness. All economic indicators can provide information to the company in terms of quality costs trend. All indicators are important for to improve TQM performance and for continual improvement of quality. The relative importance of economic indicators brings knowledges for managers to value cost effectiveness.
Methodology/Approach:In this paper we use economical and statistical indicators for quality costs. We use in this paper model PAF, that it include prevention costs, evaluation costs, internal errors costs, external errors costs. We used these statistical indicators: Total costs, Individual simple cost index, cost ratio and cost structure.Findings: All these economic indicators can provide information to the company in terms of quality costs trend and their constant monitoring and management. Quality costs in relation to the profit participate with low percentage ie. the costs relative to quality significantly affect the generation of profits as their share of unit sales is too low, which is the most positive indicator of profit. While an index of costs in the monitored period decreases, which is in terms of this indicator positive phenomenon and it is not necessary to optimize the costs of the quality in relation to the reported sales.Originality/Value of paper: Cost effectiveness helps to improve TQM performance. TQM is a major business strategy for the company. Cost of quality influence to profit in the industrial company and profit is very important indicator for next business activities.