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Cost of Poor Quality

Tags: Quality

The Cost of Poor Quality is a business metric used to assess the costs that arise from defective and/or inefficient processes, products and services within an organisation. It is measured as a percentage of total sales or costs. It includes internal failure costs that are incurred before delivery of the product (such as additional inspection costs, costs of repair/rework, wastage etc) and external failure costs that are incurred after delivery of the product to the customer (such as loss of reputation/trust, opportunity costs, claims, additional customer service costs etc).


Is related to Cost of Quality

Has acronym COPQ