TS 16949 Clause 5.6.1.1 - Cost of Poor Quality - How can I track CoPQ?

[Mike Smith]

Cost of Poor Quality

5.6.1.1 in TS16949 states "regular reporting and evaluation of the cost of poor quality". Can anyone give me an example of how they address this issue. We have differing opinions here.
Should this be addressed anytime a non-conformance is written? Even if it only involves changing a procedure.
Should this be addressed only when non-conforming product is shipped or produced?
Does anyone have an example of a form they use to address this issue?
Any help is greatly appreciated.

 

[ralphsulser]

Costs of poor quality geberally consist of items such as the following costs:
Internal-Scrap, Sorting, Rework, actual measured against target established
External-Customer issues for products inluding returns, scrap, sorting, rework
Thses are some basic examples of data you need to capture and report. Best if done in dollars, and the experessed as percent.
Hope this helps

 

[JRKH]

A Quick Take

What you choose to include in your COPQ measure is somewhat up to you. there are, of course the obvious ones i.e. returned scrap and internal scrap, but there are others that are less obvious. After all, don't we have a job because of poor quality?

But I digress

I would suggest looking at your culture and your ability to gain accurate measures. (a poor measure being worse than no measure)
Once you start gathering the obvious measures. Present these to the "powers that be" with the caveat that there are a goodly number of additional costs that you haven't gotten to yet, and get them to help define what costs need to be included.

Ideally any cost incurred because something wasn't done right the first time is a cost of poor quality.

I started by gathering the large and obvious numbers - External scrap, cost of repairs etc. Once we aquired a new production control software, I began gathering internal data as entered into the computer. We are now analyzing this data and improving the methods so that we can both improve our porcesses and refine the data to give us better results.

I'm sure others will be able to give you more details

James

 

[Al Rosen]

Mike:

You may want to read the discussion in this thread
https://elsmar.com/elsmarqualityforum/threads/7325/

 

[Marc]

Re: Cost of Poor Quality

Thanks for the link, Al!

 

[Sam]

Re: Cost of Poor Quality

5.6.1.1 in TS16949 states "regular reporting and evaluation of the cost of poor quality". Can anyone give me an example of how they address this issue. We have differing opinions here.
Should this be addressed anytime a non-conformance is written? Even if it only involves changing a procedure.
Should this be addressed only when non-conforming product is shipped or produced?
Does anyone have an example of a form they use to address this issue?
Any help is greatly appreciated.

We track internal scrap and re-work, supplier scrap and re-work (if we do it in house), returned product from our customers. Everything is tracked on the computer and reported monthly.