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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 challenge is to reduce the Cost of Poor Quality