QM Bench

Cost of Poor Quality (COPQ) Calculator: PAF Model

Enter the costs of prevention, appraisal, internal and external failure and the sales of the same period. You get COPQ, its share of sales and a Pareto of failure costs.How to use ↓
  1. 1Enter your data
  2. 2Read the verdict
  3. 3Download the PDF report

No data yet

Enter costs for the items you know (in thousands is fine) and the sales of the same period, or load the sample.

Where this tool fits

Before this
Supplier Complaint Cost CalculatorAdd to the cost of poor quality
Cost of Poor Quality (COPQ) Calculator
Next step
Pareto ChartRank the failure costs

The PAF model

  • Prevention: planning, FMEA, training, supplier development.
  • Appraisal: inspection, tests, calibration, audits.
  • Internal failure: scrap, rework, re-inspection, quality downtime.
  • External failure: complaints, chargebacks, warranty, returns, premium freight.

Use the same period and unit for all figures. Rename or add items to match your cost accounts.

Frequently asked questions

›What is the cost of poor quality?

COPQ is the cost of not doing things right the first time: internal failures (scrap, rework, downtime) and external failures (complaints, warranty, returns). Together with prevention and appraisal costs it forms the total cost of quality (PAF model).

›What is a typical COPQ?

Manufacturing companies often have 5 to 15 % of sales, world-class companies below 2 %. Many costs are hidden (extra inspection, overtime, premium freight), so the first calculation is usually an underestimate.

›Why include prevention and appraisal?

Increasing prevention usually lowers failure costs much more than it costs. The ratio between the categories shows where the money goes.