Cost of Poor Quality (COPQ)
Quality performance has major impact on a company's top and bottom line. Poor quality not only affects customer satisfaction but can also affect the ability to be competitive on price due to high costs.
Most companies are good at measuring and continuously reducing the direct and visible quality costs such as waste, rejects, replacement deliveries, compensations and recalls.
But it is only the tip of the iceberg and there is great potential in making the indirect quality costs visible and perform reduction of these.
I can help you initiate a process for reduction of Cost Of Poor Quality:
- Identification of the main sources of COPQ
- Plan for data collection / basis for calculating / estimating quality costs
- Collection of data and calculation / estimation of quality costs
- Analysis of results and selection of focus areas
- Root cause analysis for each focus area
- Action Plan
It is my recommendation to use systematic problem solving to reveal causes and opportunities for improvements.