COPQ - Cost of Poor Quality
Measurement in dollars, (usually used to
benchmark the effects of a six
sigma project), but could include other factors, that depicts the
overall impact of failures, (external
failure for example), in the process or
system as it exists. This may include labor and material costs for rework
and other non-value added actions.
One of the goals of six
sigma is to insure these costs are not occurred.
In general, the price paid for not doing
the right things, right the first time. The price could include scrap,
rework, (which would include material and labor), and customer's
opinions. Customer's opinions can be deep seeded and last 20 years or
more.
Also see our article Poor
Quality Can Cost You Customers, Forever, Waste-Free
Industrialized System, and Design
Margin - Statistical Tolerance.
