COPQ
Finance
COPQ (Cost of Poor Quality)
Cost of Poor Quality
Cost generated by defects, rework, scrap, warranty, complaints, delays and other consequences of poor quality.
Examples
- 01The plant estimates its COPQ at EUR 1.4 million a year, including scrap, rework, warranty claims and extra freight for replacement parts.
- 02The monthly quality and finance review shows COPQ by category, with warranty costs growing fastest.
- 03A project to stop a recurring seal leak is approved because it addresses EUR 300,000 of COPQ, and the saving is checked after six months.