Understanding the COPQ Parameters

The Cost of Poor Quality (COPQ) Calculator helps you estimate the financial impact of quality-related failures. COPQ includes costs associated with defects, rework, customer dissatisfaction, and quality management efforts.

• Internal Costs: Expenses due to scrap, rework, and reinspection within the organization.
• External Costs: Costs from warranty claims, product returns, and customer dissatisfaction.
• Appraisal Costs: Expenses related to testing, inspections, and audits to ensure quality.
• Prevention Costs: Investments in training, process improvements, and preventive actions.

Use this calculator to identify areas for improvement and reduce operational inefficiencies, enhancing profitability and customer satisfaction.