Cost of Poor Quality (COPQ)

Cost of Poor Quality (COPQ) is a phrase used in Six Sigma and is defined the author, Greg Brue, as the “Total labor, materials, and overhead costs attributed to imperfections in the processes that deliver products or services that don’t meet specifications or inspections”.

Although this may seem to be focused on the manufacturing sector of business, it is equally applicable (though a bit more difficult to quantify) in the professional service arena.

As a good mental exercise, try to identify some of the costs in your department that contribute to COPQ. The dollar figures can be staggering!