DMAIC is a five step method for improving existing problems with unknown causes. DMAIC stands…
What is Cost of Poor Quality (COPQ)?
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, reviews and surveys, etc.
- Failure Costs:
- Internal Failures: Including scrap, rework, expediting, equipment downtime, injuries, etc.
- External Failures: Including product recalls, returned products, complaint handling, lost sales, etc. COPQ is often represented as a dollar amount (or as a percentage of sales) and is composed of the categories listed above. The goal of any organization is to reduce COPQ to zero.