Minimizing the Cost of Poor Quality (COPQ) through QA
The Cost of Poor Quality (COPQ) represents the significant financial drain caused by defects and inefficiencies. It includes tangible and intangible costs that directly impact profitability and efficiency.
Internal Failure Costs: These occur *before* delivery to the customer and include scrap materials, rework labor, re-inspection time, and machine downtime caused by defects found during production or testing.
External Failure Costs: These occur *after* delivery and include warranty claims, product returns, complaint handling, product recalls, liability costs, and damage to brand reputation leading to lost sales.
Proactive Quality Assurance focuses heavily on Prevention Costs (training, quality planning, process improvement) and Appraisal Costs (inspection, testing, audits) to *minimize* these much larger internal and external failure costs.
By systematically reducing COPQ, QA directly translates into improved efficiency, lower operational expenses, and higher profitability. Studies suggest COPQ can account for 20-30% of revenue if left unmanaged.