Cost of Poor Quality (COPQ) (also called the “hidden factory”) is a monetary representation of the unnecessary incurred cost due to inefficient manufacturing system. Management is typically aware that the COPQ exist but typically take no action to reduce it as it is not reported in an obvious way. Only by developing the calculation model, and by quantifying the loss, this is becoming the call for action.
- Objectives/Key learning points
- How to quantify the COPQ – data collection planning
- How to reduce the COPQ – this is also linked to other tools like “8D” (D.4.8) and to SMED (D.3.10)
- Teaching Methodology
- Short theoretical introduction followed by explanation of a case study model for calculating the COPQ
- Implementation Methodology
- On the project implementation of the COPQ calculation model
- Identification and execution of improvement actions
- Measured impact