Elsmar Cove Forum Header Graphic The Elsmar Cove Wiki Sitemap More Free Files The Elsmar Cove Forums Discussion Thread Index Post Attachments Listing Failure Modes Services and Solutions to Problems Elsmar Cove Forums Main Page Elsmar Cove Home Page
NQA-USA
NQA-USA
Miner's MSA (Measurement Systems Analysis) Blog 
Go Back   The Elsmar Cove Forum > Common Quality Assurance Processes and Tools > Quality Tools, Improvement and Analysis
Forum Username

Wooden Line

How to Calculate the Cost of Poor Quality (COPQ)

Search the Elsmar Cove
Search Elsmar
Monitor the Elsmar Forum
Follow Marc & Elsmar
Elsmar Cove Forum RSS Feed  Marc Smith's Google+ Page  Marc Smith's Linked In Page   Marc Smith's Elsmar Cove YouTube Page  Marc Smith's Facebook Page  Elsmar Cove Twitter Feed
Elsmar Cove Groups
Elsmar Cove Google+ Group  Elsmar Cove LinkedIn Group  Elsmar Cove Facebook Group
Donate and $ Contributor Forum Access
Courtesy Quick Links

Links that Elsmar Cove visitors will find useful in your quest for knowledge:

Howard's
International Quality Services
Marcelo Antunes'
SQR Consulting
Bob Doering's
Correct SPC - Precision Machining

NIST's Engineering Statistics Handbook
IRCA - International Register of Certified Auditors
SAE - Society of Automotive Engineers
Quality Digest Portal
IEST - Institute of Environmental Sciences and Technology
ASQ - American Society for Quality

Related Topic Tags
cost of poor quality (copq), cost of quality (coq)
Reply
 
Thread Tools Search this Thread Rating: Thread Rating: 2 votes, 5.00 average. Display Modes
  Post Number #1  
Old 23rd September 2004, 01:04 AM
sowmya

 
 
Total Posts: 130
Question How to Calculate the Cost of Poor Quality (COPQ)

Ours is a medium sized manufacturing unit.We are capturing all type of reworks (both internal and customer end) .Can anybody help me in calculating cost of poor quality. (From basics)

Sponsored Links
  Post Number #2  
Old 23rd September 2004, 03:35 AM
Sambasi

 
 
Total Posts: 84
Cost Of Poor Quality

My name is sambasi (K. Sambasivam I am working with Thai Baroda Industries Ltd., Thailand). To answer your question :-
1. What is Cost of Poor Quality?
Cost of Poor Quality (CPQ) is defined as sum spent on
- Preventive Costs.
- Apprisal Costs.
- Failure Costs (Internal and External Failure)
2. Cost of failures to be considered in manufacturing process.
- Internal : (1) Scrap, (2) Waste, (3) Repair/rework,
(4) Down grading.
- External : (1) Claim / Replacement, (2) Concession.
(3) Reshipment.
3. Calculations
- Cost of poor quality is calculated as a sum of all items.
4. Internal / External Failures and Defination.
1. Scrap : Total cost to produce a product which must be scrapped.
2. Waste : Cost of material that is left over and can not be used after
completion of an order.
3. Repair/rework : Cost to make a product usable.
4. Down Grading : Cost of material made from standard input but fails
to meet quality requirments at output stage. Or cost of salvaging
(cost of unusable output, while processing inputs with suspected
quality deviations)
5. Claim / Replacement : Adjustments made to compensate for returned
goods.
6. Concessions : Adjustment made to compensate for quality problem.
7. Reshipment : Repackign and reshipment costs for customer retruned
goods.
Thank You to Sambasi for your informative Post and/or Attachment!
Sponsored Links

  Post Number #3  
Old 23rd September 2004, 07:22 AM
remsqa

 
 
Total Posts: 40
Please Help! Cost Of Poor Quality

Hai sawmaya

Mr sambasivam havd explained all the basic and the relevant data in detail can i do summerize the same

In simple the COPQ is meant by the extra expence which is accoured due to the derotiation of Quality (REJ ,SCRAB)Or Expence made to correct the component to meet the expected charactertics (REWORK COST)

Or any extra cost made to deliver the component because of delay due to the Quality non conformance .It might me tracked as a premium freight.
Expecting all you value added comments

REGARDS
R.L.SATTHISH KUMAR
  Post Number #4  
Old 23rd September 2004, 09:00 AM
gpainter

 
 
Total Posts: 1,108
For an average company it has been estimated that the cost of poor quality eats up 30% of your bottom line.
  Post Number #5  
Old 23rd September 2004, 09:05 AM
Lyn N Iles

 
 
Total Posts: 13
Cost Of Poor Quality

Another cost of poor quality which may be significant is the possible loss of future orders from this customer.

Not only that, sometimes customers have contact with other organisations who may be existing customers or who might become customers in the future. If they are sufficiently annoyed by your failure to provide quality product or service, they may communicate this to these other organisations.

Good news travels fast - bad news travels even faster .........!

Lyn
  Post Number #6  
Old 23rd September 2004, 11:47 AM
Wes Bucey's Avatar
Wes Bucey

 
 
Total Posts: 10,982
Ah, yes. It is a sad tale, but true:
"You never get a second chance to make a good first impression."
Most buyers don't have time or patience to work through a supplier's problems, they just move on to another supplier. I sure never go back to a filthy restaurant to see if they cleaned up.
  Post Number #7  
Old 24th September 2004, 07:01 AM
Greg B's Avatar
Greg B

 
 
Total Posts: 832
Quote:
In Reply to Parent Post by sowmya

Ours is a medium sized manufacturing unit.We are capturing all type of reworks (both internal and customer end) .Can anybody help me in calculating cost of poor quality. (From basics)
Sowmya,

Here is an attachment I placed on the cove, some time ago. You should try the search tool as there are many topics associated with the 'cost of quality'. Look at the bottom of this threads page and you will find some links that are automatically placed there by the forum software. Here is my attachment:

Non Conforming Flow 2.doc - Post Attachment

This is the original thread and explains the chart.
Costs of NonConformity - A Flow Chart Showing Costs Involved
Please take the time to review the thread and everyone's comments. I hope it helps.
Thank You to Greg B for your informative Post and/or Attachment!
  Post Number #8  
Old 24th September 2004, 05:34 PM
AllanJ

 
 
Total Posts: 311
Quote:
In Reply to Parent Post by sowmya

Ours is a medium sized manufacturing unit.We are capturing all type of reworks (both internal and customer end) .Can anybody help me in calculating cost of poor quality. (From basics)
Whatever else people may advise you to do, including using the (almost discredited) conventional "quality cost" catgories of failure, prevention and appraisal, the people who can best help you, calculate the cost of poor quality, work in your accounting department.

If you want to get management attention, buy-in for what you are doing and their comprehension of the cost estimates you and your accounts department should together produce, use the official accounting system and the cost categories and terms with which your management is familiar. That will avoid the need to explain the jargon about failure, prevention etc, which not many managers use anyway, at the upper levels.

If you have the equipment and ability to download cost data into a spreadsheet, that will be of great assistance as you can then prepare your reports with graphical summaries.

Involve yourself with the accountants - as I have counseled many quality managers for 30 years or so, they can be your best allies

Last edited by AllanJ; 24th September 2004 at 05:36 PM. Reason: Minor typos and punctuation corrected
Thanks to AllanJ for your informative Post and/or Attachment!
Reply

Lower Navigation Bar
Go Back   The Elsmar Cove Forum > Common Quality Assurance Processes and Tools > Quality Tools, Improvement and Analysis

Do you find this discussion thread helpful and informational?


Bookmarks


Visitors Currently Viewing this Thread: 1 (0 Registered Visitors (Members) and 1 Unregistered Guest Visitors)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Forum Search
Display Modes Rate Thread Content
Rate Thread Content:

Forum Posting Settings
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Similar Discussion Threads
Discussion Thread Title Thread Starter Forum Replies Last Post or Poll Vote
Personnel COPQ (Cost of Poor Quality) nado2020 Quality Management Related Issues 6 21st June 2009 11:26 AM
COPQ - Cost of Poor Quality - COPQ course for non-financial people Stevenli Misc. Quality Assurance and Business Systems Related Topics 1 4th April 2009 01:09 PM
Cost of Poor Quality (COPQ) and Reputation Manix Quality Tools, Improvement and Analysis 25 7th April 2008 01:31 AM
COPQ (Cost of Poor Quality) and COQ (Cost of Quality) - Differences peach Definitions, Acronyms, Abbreviations and Interpretations 26 5th January 2008 04:35 PM
COPQ - Cost of Poor Quality - Seeking recently published data on COPQ Johnny Misc. Quality Assurance and Business Systems Related Topics 4 11th February 2004 09:09 AM



The time now is 10:48 PM. All times are GMT -4.
Your time zone can be changed in your UserCP --> Options.


   


Marc Timothy Smith - Elsmar.com
8466 LeSourdsville-West Chester Road, Olde West Chester, Ohio 45069-1929
513 341-6272
NOTE: This forum uses "cookies".