What is COPQ (Cost of Poor Quality

COPQ: Costs of defective products or services, exposing process flaws & quality issues.

4 categories of costs :

Prevention costs

Appraisal costs

Internal failure costs

External failure costs

Why measure Cost of Poor Quality?

Quality costs crucial for profitability, efficiency, and satisfaction. Tracking enables improvements.

Impact of COPQ on profits

Poor quality costs drain profits, impacting bottom line. Measure to reduce, improve margins.

Analyzing poor quality costs drives strategic quality actions.