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INDEX Table 1 - Cost of Quality 2 - Cost of Poor Quality

Tab Descriptions' CoQ CoPQ

Cost of Quality (CoQ)


Return to Index Table INDEX Current Cost Summary Current Month Quality As a Percent of Costs Sales Other 5% Year To Date Quality Costs As a Percent of Sales Other 5% 10%

Description Prevention Costs

Marketing/Customer/User $1,000.00 Product/Service/Design Reviews Purchasing Operations Quality Planning and Administration Prevention Training Other Prevention Costs Total Prevention Costs $1,000.00 Prevention Targets $2,000.00 Appraisal Costs Inspection and Test Purchasing Appraisal Operations Appraisal (SPC) External Appraisal Quality Audits Misc Quality Evaluations Total Appraisal Costs Appraisal Targets Internal Failure Costs Product/Service/Design Failure Purchasing Failure Operations Failure Scrap Rework Re-inspection, Retest Downgrading/Discounting Failure Analyses Other Internal Failure External Failure Costs

10% $2,000.00

5% 10%

10% $2,000.00 20% $4,000.00

5% 10%

10% 20%

$0.00 $0.00

0% 0%

0% 0%

$0.00 $0.00

0% 0%

0% 0%

Base Data Net Sales Other Base

Warranty Changes Complaint Adjustment Returned Material Allowances Total Failure Costs $0.00 0% Failure Targets $0.00 0% Total Quality Cost $1,000.00 5% Total Quality Targets $2,000.00 10% Current Month Budget Actual $20,000 $10,000

0% $0.00 0% $0.00 10% $2,000.00 20% $4,000.00

0% 0% 0% 0% 5% 10% 10% 20% Year to Date Budget Actual $40,000 $20,000

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Cost of Poor Quality (CoPQ) and ROI Calculator


Return to Index Table Duration Cost of Quality (DCOQ) Average Transaction Frequency (Transaction/year) Total per year Years per customer DCOQ
INDEX

$20 50 $1,000 7 $7,000

1000 15% 150 96% 4% 144

Total Customers/Transactions Turnover rate Number of Lost Transactions % due to internal causes % due to external causes. Number of Preventable Losses

Transaction Description: (e.g., PM, CWT, service delivery, etc.) Average minutes 5.0 Hourly Rate $15 Cost of Materials Other Failure Costs $0.00 $0.13 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Cost of NonConformance $1.25 $0.13 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.13 1000 $125 $1.88 10 $18.75 $31,769 $1,008,000 $0 $0 $1,039,769 Total Business Cost

Tasks 1. Customer wait time and materials 2. Testing 2. Take order 3. Prepare and deliver order 4. Issue bill/invoice 5. Process payment 6. Activity 6 7. Activity 7 8. Activity 8 9. Activity 9 Total Cost Per Failure Transactions/day Transaction Cost Per Day Rework and Scrap Costs Transactions reworked/day Rework/Scrap Costs Per Day Annual Transaction Cost Outages/year 1. Lost Opportunity Costs 2. Lost Assets Costs 3. Lost Business Costs 4. Additional Failure Costs Annual Failure Costs Basic tasks to fix the problem 1. Customer wait time and materials

Cost of Task $1.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Assumptions

$1.25 1000 $1,250 5.0 $15 $1.25 $0.50 $0.13 10 $1.25 $276,526 $0 $0 $0 $276,526 Average Loaded rate min/60 6.0 $50 Calculated cost $1 Expenses 26 500 Total 527.25

1.0% 221

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Return on Investment and Payback Target Reduction Prevention Costs

5%

$51,988.44 $50.00

Cost of Poor Quality (CoPQ) and ROI Calculator


ROI Payback Period (days) $1040:$1 0

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Cost of Poor Quality (CoPQ) and ROI Calculator

Assumpti ons

Error Rate Days/year

Template Designed By Gimgros "Sigma - Cost of Poor Quality"

Cost of Poor Quality (CoPQ) and ROI Calculator

Template Designed By Gimgros "Sigma - Cost of Poor Quality"

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