The cost of poor quality (COPQ) refers to the total cost of producing and delivering a product or service that does not meet customer expectations. Scrap, rework, warranty claims, product returns, and lost business due to dissatisfied customers can all be included in COPQ. While the direct costs of poor quality can be quantified, the indirect.. The Cost of Poor Quality (COPQ) quantifies the negative outcomes due to waste, inefficiencies and defects in a process. Quality great Joseph Juran separated these costs into 3 categories: Prevention Costs: Including quality planning, training, preventive maintenance, housekeeping etc. Appraisal Costs: Including testing, inspection, audits.
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What is CoPQ? Cost of poor quality is the total financial loss incurred by a company due to providing poor-quality products or services to the customer. It would not exist without errors, rework, and/or field failures. Defects that occur before delivering the product to the customer should be added to the manufacturer's cost.. Total cost of poor quality = $20,000 + $110,000 = $130,000. In this example, the total COPQ for this company would be $130,000 per month, which represents a significant financial impact on the business. By identifying and addressing the root cause of poor quality, the company can reduce the cost of poor quality and improve its bottom line.
