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Cost of Poor Quality (COPQ)

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What is the 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.
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