Cost of Poor Quality, otherwise known as COPQ, is a tool used often by Lean and Six Sigma specialists, when determining their problem statement for a quality improvement based project. The COPQ Calculator will quickly assist you in determining the size of the quality problem at hand. Once you know the size of the problem, you can determine if it is an issue worth working on to resolve, or if there is another process which needs your attention more.
“A problem well stated is a problem half solved”
Charles F. Kettering, American Engineer & Inventor (1876-1958)
CASE STUDY: Packaging Factory Rework
A Packaging Factory found that over four months, they produced 31,000 hours of work, but with a 3.8% rework rate. Doesn’t sound like too much, and many companies would simply absorb it. However, once the team realised their annualised losses, they swung into action…
Lean based solutions were implemented: Process Flow, Layout, Mistake Proofing (Poke-Yoke), Visual Management and Standardised Work.
Cost to Implement: $40 in purchased resources and 24 hours of internal labour.
Results: Zero Rework in the two months since implementation.
RETURN ON INVESTMENT: 2200% ….. based on the first two months of results !!!
So, what’s your Cost of Poor Quality ???
The COPQ Calculator is available on the App Store and on Google Play Store.