COST OF POOR QUALITY

The Cost Of Poor Quality (COPQ) is the cost generated as a result of producing a defective product.

This cost is calculated based on:

• Factory & Tannery General Costs
• QC Team
• Freight
• Rework
• Defective Product Penalties
• Product Late Delivery Costs & Penalties
• Chargebacks from Customers
• Factory & Tannery Claims Administration
• Gross Margin Loss on Future Sales or Clients
• Chargeback Administration

One of today’s main challenges is to reduce the Cost of Poor Quality