The Cost of Poor Quality (COPQ) captures the costs that would disappear if systems, processes, and products were perfect. Popularized by IBM quality expert H. James Harrington, COPQ is a concept manufacturers can’t afford to ignore.
COPQ = Direct Costs (External Failures + Internal Failures + Appraisal + Preventive Action) + Indirect Costs (Customer Dissatisfaction + Loss of Reputation)
How can you identify the elements in your equation? Download this presentation to calculate your COPQ.