Cost of poor quality

- Every Lean Six Sigma project…has an operational and financial impact.…The elimination of poor performance and reduction of waste…can be monetized by quantifying COPQ,…or the cost of poor quality.…What is the cost of poor quality?…The cost of poor quality, or COPQ,…are the costs associated with poor performance.…And if things were done right the first time,…all those costs need not be incurred.…COPQ has three categories,…appraisal costs,…internal failure costs,…external failure costs.…

Appraisal costs are unnecessary costs…because if things were done right,…there is no need for the checks,…rechecks, inspections, or reviews.…Examples include rechecking and reviews,…inspection to assure quality,…activities and costs associated with appraisals…that are needed because the process is not good enough…to produce defect-free outputs.…Internal failure costs are costs associated with failures…that occur within your organization,…before the service output…or product is sent to your customer.…

For example, re-doing it because it failed the first time…