INTRODUCTION FOR COST OF POOR QUALITY(COPQ)

Is your organization spending too much money on rework? Is your organization losing customers? Has your organization losing market share? If any of these things are true, your organization is spending money on failure. The way that you think about the various cost of quality can help you improve this failure focus. Cost of Poor Quality(COPQ) is an excellent continuous improvement management tool. COPQ can be used effectively to identify, prioritize and then track continuous improvement projects by breaking down quality costs into four standard categories of internal failure, external failure, appraisal and prevention.

LEARNING OUTCOME OF COST OF POOR QUALITY(COPQ)

At the end of this course, participants will be able to :

• Understand what is COPQ.
• The elements and definitions of COPQ.
• Used tools and strategies to reduce the cost of non-conformance.
• The benefits of thinking about COPQ.

COURSE CONTENT

Day 1

Module 1

• How to define COPQ?
• Opportunity to reduce real costs.
• Understand quality cost.
• Categories of quality cost.

Module 2

• Internal failures cost.
• Rework.
• Material review.
• Down time.
• Workshop to identify internal failures cost.

Module 3

• External failures cost.
• Warranty charges.
• Product liability.
• Freight cost.
• Product recall.
• Workshop to identify external failures cost.

Module 4

• Appraisal cost.
• Receiving inspection.
• Source inspection.
• Final inspection.
• Product testing.
• Workshop to identify appraisal cost.

Module 5

• Prevention cost.
• Quality planning.
• Process control.
• Training.
• Preventive maintenance.
• Workshop to identify appraisal cost.

Module 6

• White collar COPQ.
• Controller COPQ.
• Software COPQ.
• Plant adninistration COPQ.
• Purchasing COPQ.
• Marketing COPQ.
• Personnel COPQ.
• Industrial engineering COPQ.

Module 7

• Controller COPQ.
• Billing errors.
• Incorrect accounting entries.
• Payroll errors.

Day 2

Module 8

• Software COPQ.
• Crashes.
• Deadlocks.
• Incorrect input.

Module 9

• Plant administration COPQ.
• Facilities redesign.
• Overstaffing.
• Equipment downtime/idle.

Module 10

• Purchasing COPQ.
• Line down cost.
• Excessive inventory.
• Premium freight cost.

Module 11

• Marketing COPQ.
• Overstock.
• Loss of market share.
• Incorrect order entry.

Module 12

• Personnel COPQ
• Absenteeism.
• Turnover.
• Grievances.

Module 13

• Industrial engineering COPQ.
• OSHA fine.
• Shipping damage.
• Relayout.
• Paying contractors for poor quality.

Module 14

• COPQ calculations.
• COPQ workshop.

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