Simply, just what it sounds like it is. Cost of Poor Quality is how much money a nonconforming condition costs your organization… The “How Much Does it Hurt” metric. And quite the valuable metric it is. It shows you, your team, and management the pain caused by the nonconforming condition or defect. Importantly, it shows how much pain.

COPQ is measured to obtain a baseline measure of where you are today in terms of costs. However, you can also use this measurement to sell improvement projects to management. COPQ shows your management why it is critical that you begin your project now.

Cost of Poor Quality allows you to get an estimate of these wastes and speak the language of management. Often, these wastes get reported in terms of inventory turns, defect rates, test yields, number of failures, etc. None of these metrics help management prioritize the true financial impact of these wastes. By converting them into dollars, these wastes provide everyone with a better understanding of how big these problems are

Learning Outcomes

By the end of the Cost of Poor Quality (COPQ) program, delegates will be able to:

• Learn to measure Cost of Poor Quality (COPQ)
• Internal Failure Cost
• External Failure Cost
• Appraisal Cost
• Preventive Cost
• Able to Quantify the size of the problem to justify improvement efforts.
• Able to guide the development of the improvement efforts.
• Able to track the progress of the improvement initiatives.
• Understanding the tools used to calculate COPQ.
• Able to understand and drive for COPQ reduction.

Course Outline

Module 1: 

• History of Quality cost development
• Goals of Quality cost system
• Taguchi Quality Loss function
• ISO-9000 and Quality cost
• Quality cost categories

Module 2: 

• Prevention cost
• Appraisal cost
• Internal Failure cost
• External failure cost

Module 3: 

• 8 Types of waste cost
• Quality cost program implementation
• Supplier Quality cost
• Cost of service/ Software Quality

Module 4:

• Quality cost in small and medium enterprises
• Quality improvement programs
• Cost of Quality in education
• Case Studies and Exercises

Who Must Attend?

• Managing Director / Factory Manager/Production Manager/Supervisor
• Managers/ Executive/ Supervisor
• Manager / Engineering Managers / Engineers involved in Quality Improvement.

Methodology

• Lecture, Discussion and Case Studies.