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Using the Cost of Poor Quality to Drive Process …
Page - 1 Using the cost of poor Quality to Drive Process ImprovementMarch , 2006 Presented by:Dan Olivier, Certified Software Solutions, Inc. Seyedzadeh, Bayer Healthcare Diagnostic - 2 Objectives: To Understand COPQ1. What is COPQ2. Elements of the model3. Calculating COPQ3. Real World Applications4. Implementing Improvement actions Page - 31. COPQ Introduction1. COPQ IntroductionPage - 4 The cost of poor Quality (COPQ) Represents the differencebetween The actual costof production or service What the cost would beif the Process were effective in manufacturing products that met customer needs and were defect free. Page - 5 COPQ EquationCOPQ = Costs (external failures + internal failures + appraisal + preventive action)Many times white collar poor Quality costs are not included in COPQ calculations (out of conformance purchases, excess inventory.)
Page - 1 Using the Cost of Poor Quality to Drive Process Improvement March , 2006 Presented by: Dan Olivier, Certified Software Solutions, Inc. (dolivier@certifiedsoftware.com)
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