Experts,
We have discussed a lot regarding copq in detail. We have been following copq for the past 4 years. Now, there is a question / arguement internally, whether we need to add premium freight cost to copq or not.
To explain clearly, if due to failure in purchasing process, we are taking a consignment from supplier by incurring additional freight, we term it as premium freight inward. Sameway, if we are spending extra cost on shipping a consignment to customer, due to internal failures, we term it as premium freight outward. (MAY NOT BE DUE TO QUALITY REASONS / DEFECTS IN THE PRODUCT OR PROCESS)
These things we have added in copq for capturing the extra cost incurred and to get in to the action points. but now, the arguement is, since it is not due to quality reasons, why we need to add in to copq.
I have added our work sheet.
What is the industrial practice?. Is it good to add or to be removed.
Your suggestions please.
Thanks in advance.
Sowmya
We have discussed a lot regarding copq in detail. We have been following copq for the past 4 years. Now, there is a question / arguement internally, whether we need to add premium freight cost to copq or not.
To explain clearly, if due to failure in purchasing process, we are taking a consignment from supplier by incurring additional freight, we term it as premium freight inward. Sameway, if we are spending extra cost on shipping a consignment to customer, due to internal failures, we term it as premium freight outward. (MAY NOT BE DUE TO QUALITY REASONS / DEFECTS IN THE PRODUCT OR PROCESS)
These things we have added in copq for capturing the extra cost incurred and to get in to the action points. but now, the arguement is, since it is not due to quality reasons, why we need to add in to copq.
I have added our work sheet.
What is the industrial practice?. Is it good to add or to be removed.
Your suggestions please.
Thanks in advance.
Sowmya