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DESCRIPTION
Cost of Poor Quality (COPQ) quantifies the negative outcomes (costs) due to waste, inefficiencies, and defects in a process. Cost of Poor Quality is often represented in dollar amounts (or as a percentage of gross sales), and is composed of both internal and external failures. The goal of any organization is to reduce COPQ to zero.
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Source: Best Practices in Lean Template, Cost of Poor Quality, COPQ Excel: Cost of Poor Quality (COPQ) Excel (XLS) Spreadsheet, Flevy
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