Cost of Poor Quality (COPQ)

Cost of poor quality (COPQ) is the total cost a business bears because products or processes do not meet requirements the first time. It includes scrap, rework, extra inspection, returns, warranty claims, and the capacity consumed by redoing work. Quality literature usually splits it into internal failure costs found before shipment and external failure costs found after delivery, alongside prevention and appraisal costs.

COPQ matters for digital programs because it is a recurring cost that a plant pays whether or not a roadmap item is marked done. A quality management system records the defects. Joining those records to place and time on the floor is what lets teams see where the loss starts.

Frequently Asked Questions

Is COPQ the same as the cost of the quality department? No. The cost of the department is mostly prevention and appraisal. COPQ focuses on failure costs and the avoidable work they create.

Where does COPQ hide? Often in rework hours, expedited freight, and extra inspection that are booked to other cost centers and never summed as one number.