Must COPQ always be quantified as a monetary ($) amount?

John C. Abnet

Teacher, sensei, kennari
Staff member
#1
Good day Elsmar family.
Some questions specific to this topic...
1- Must COPQ always be quantified as a monetary ($) amount?
2- What about qualifying instead of quantifying?

Thoughts?
 
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outdoorsNW

Quite Involved in Discussions
#2
Some thing are hard to assign a dollar value to. If the customer views you as less capable due to repeated quality problems, putting a dollar value on the lost business is usually difficult, at least in the short term. Assigning cost to a specific incident is sometimes difficult. Despite this, I think assigning an estimated cost to an event or ongoing problem that is hard to put a specific dollar value to is better than simply ignoring the cost. If you ignore any cost you can not assign a specific dollar value to, you end up understating the actual cost of poor quality. If you assign a best guess cost, while subject to bias and manipulation to suit someone's agenda, at least you are getting closer to the real cost of poor quality.

While I have never heard of this being done, an alternative might be to create an index of that assigns points for easily determined dollars and points for other effects of poor quality that can not easily have a cost assigned but do have a cost of some sort. (estimated lost future orders, things where it is not cost effective to track costs, etc,)
 
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