With recalls taking center stage in today’s media, manufacturers must closely evaluate the cost of poor quality (CoPQ) to their business. CoPQ is typically defined as the costs that would disappear if your manufacturing process was perfect. These costs include lost goodwill and expenses incurred from replacement, refund, rework, and scrapping. It has been estimated that CoPQ amounts to approximately 5% to 30% of a manufacturer’s gross sales. This means CoPQ is costing manufacturers millions per year and therefore every executive should recognize that quality must be addressed to remain competitive. In industries where the price of product is the…
