|
|
The
COPQ is the
sum spent on prevention, appraisal and failure costs. There are four categories of costs:
internal failure costs
(costs associated with defects found before the customer receives the product or
service); external failure costs (costs associated with defects found
after the customer receives the product or service);
appraisal costs (costs
incurred to determine the degree of conformance to quality requirements); and
prevention
costs (costs incurred to keep failure and appraisal costs to a minimum).
Examples
General Rule of Thumb Costs one dollar ($1.00) to prevent a problem, $10.00 to find it and $100.00 and more to fix it -- recognizing that not all failure costs can be captured.
Principles of Quality Costs: Principles, Implementation, and Use, Third Edition Campanella, Jack, editor. ASQ Press. Item: H1013 219 pages. ISBN 0-87389-443-X. 6 X 9 Hardcover. 1999. (800) 248-1946 |
