COPQ

cost of poor quality

The cost of poor quality is the money spent because products or processes are not right the first time: scrap, rework, sorting, warranty, returns and complaint handling. Internal failures are found before shipment, external failures after.

In the prevention, appraisal and failure model, spending on prevention usually reduces the total.

Calculate it

Cost of Poor Quality (COPQ) Calculator: Prevention, appraisal, internal and external failure costs.

Related terms

• First pass yield: good the first time, without rework
• Customer satisfaction: customer perception that needs are met (9.1.2)
• NCR: nonconformance report