1241 Cost of Poor Quality (COPQ) | The Fundamentals of Six Sigma | Define Phase | Lean Six Sigma

Cost of Poor Quality (COPQ) | Understanding the Hidden Cost of Poor Quality Poor quality is not just a quality problem — it is a business cost. In this video, we explore Cost of Poor Quality (COPQ), an important concept in Quality Management, Six Sigma, and Lean Six Sigma that helps organizations understand the financial impact of defects, errors, rework, waste, customer complaints, returns, and other quality-related failures. Understanding COPQ allows organizations to move beyond simply counting defects and instead ask an important business question: “How much is poor quality actually costing us?” 🎯 In this video, you will learn: ✅ What is Cost of Poor Quality (COPQ)? ✅ Why COPQ is important in Six Sigma ✅ The difference between Cost of Quality and Cost of Poor Quality ✅ Prevention Costs ✅ Appraisal Costs ✅ Internal Failure Costs ✅ External Failure Costs ✅ Examples of scrap, rework, inspection, warranty, returns, and complaints ✅ Visible and hidden costs of poor quality ✅ The relationship between COPQ and customer satisfaction ✅ How COPQ can help identify improvement opportunities ✅ How Six Sigma projects can reduce the Cost of Poor Quality 💡 The Four Cost Categories A traditional Cost of Quality framework groups quality-related costs into four categories: Prevention → Appraisal → Internal Failure → External Failure Prevention focuses on avoiding problems; appraisal involves evaluating conformity; internal failure occurs when defects are discovered before reaching the customer; and external failure occurs when defects reach the customer. The real challenge is that some costs of poor quality are hidden—such as lost productivity, additional handling, delayed deliveries, customer dissatisfaction, and potential loss of future business. 💡 Key Takeaway: Every defect has a cost—even when that cost does not appear clearly in the accounting system. COPQ provides a way to make these costs visible and helps Lean Six Sigma teams identify where process improvements can create measurable business value. 📌 Part of the Six Sigma / Lean Six Sigma / Quality Management learning series. If you find this video useful, please Like, Share, and Subscribe for more videos on Six Sigma, Lean Six Sigma, Quality Management, DMAIC, Process Improvement, Continuous Improvement, and Operational Excellence. 🔗 Related Quality & Six Sigma Learning ‪@AsqOrg1946‬ ‪@learn_and_apply‬ ‪@gembaacademy‬ #CostOfPoorQuality #COPQ #CostOfQuality #SixSigma #LeanSixSigma #QualityManagement #DMAIC #ProcessImprovement #ContinuousImprovement #OperationalExcellence #Quality #LeanManufacturing