D D’Arcadia Treasure (DAT) is a Small Medium Enterprise business producing“handmade” shoes using original traditional Indonesian fabrics as the basic material.This study specifically focuses on the production process of DAT’s flat shoes product. Todate, DAT does not have a structured and well documented quality control process nordoes it have cost calculations for the quality produced. The purpose of this study is toidentify Critical To Quality DAT customers, to design a system for quality control usingStatistical Process Control (SPC) method, and to determine the cost of quality based onDAT’s production activity for flat shoes product. Baseline analysis on the initial conditionidentified 5 main stages in flat shoes production, namely spraying, pattern design, sewing,assembly, and finishing. Inspections are conducted after 2 of the 5 stages, specificallyafter the sewing process and upon finishing. As a result of the initial analysis, the systemdesign for quality control in this study was divided into 3 main stages, specifically uponreceipt of raw materials, after each production process, and on finished goods. Thedesign formulation was initiated by identifying quality characteristics, which served asthe guideline for the “check sheet” creation. Implementing the resulting check sheetresults in data to be processed using control map, pareto diagram, and furtheridentification using the cause-effect diagram. In addition, calculations were done forquality costs such as for prevention, assessment, internal failure, and external failure inorder for the company to establish the total cost required for improving quality and theloss incurred from faulty products. The quality cost derived from implementing the systemconducted from 24 November – 20 December 2017 amounted to Rp 1.287.379,46, whichis borne by the company.