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The calculation you’re looking for is COPQ or Cost of Poor Quality. The idea is to calculate the labor hours saved by removing waste and then multiply them by the average loaded salary of the process participants impacted. In the…
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Elisabeth Swan

Elisabeth is a Managing Partner at GoLeanSixSigma.com, the co-author of The Problem-Solver’s Toolkit and co-host of the Just-in-Time Cafe. For over 25 years, she's helped leading organizations like Amazon, Charles Schwab and Starwood Hotels & Resorts build problem-solving muscles with Lean Six Sigma to achieve their goals.