The Cost of Poor Quality: Tools for Effective Control & Reduction

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Ajay Deshpande
Partner, India

The Cost of Poor Quality: Tools for Effective Control & Reduction

Which Six Sigma tools are effective to determine and reduce the cost of poor quality (in the manufacturing sector)?
Since there are lot of quality tools used in industries, selecting correct, effective tools would lead to reduce time of problem solving. Hence it is essential to identify appropriate tools.


Project Manager, India

Tools Used for Arriving at Cost of Poor Quality (COPQ)

Failure Mode and Effects Analysis (FMEA) can be used to estimate the COPQ. In FMEA, we will arrive at the risk priority number (RPN). Based on this, it is possible to arrive at COPQ.
For further details plese refer the article published by Mr. Pankaj Sharma.

Teacher, Costa Rica

Tools to Determine Cost of Poor Quality

(Translated by Editor)
To determine the cost structure, I recommend to initially use the CTQ Tree (Critical to Quality) from which you can derive "non-conformities" that can then be translated into costs of poor quality.
After having determined the structure of quality costs, the accounting department has a key role in measuring these costs. Their reports would form the basis for further analysis.
In reducing these costs I recommend starting with the use of Lean tools from the analysis of the molting process, as well as more advanced statistical tools including correlation analysis among others.

Ajay Deshpande
Partner, India

Cost of Poor Quality

@ARAVIND: Good input. But in real time working, the challenge is correlation of risks to cost. My ex... Sign up

Teacher, Costa Rica

CTQ to Determine Cost of Poor Quality

(Translated by Editor) The structure of the costs of poor quality can cover a lot of element... Sign up

Jim Johnstone
Consultant, United States

Cost of Poor Quality versus FMEA

@Ajay Deshpande: if you are using PFMEA (Process FMEA) as a prevention tool, perhaps you can adjust... Sign up

Yingtao Zhang, China

Value Steam Mapping Tool

When you know the quality is poor, I think you had better to investigate where the poor quality is c... Sign up

Ger de Waard
Management Consultant, Netherlands

Tools Used for Arriving at Cost of Poor Quality (COPQ)

COPQ (annualized) = [Sum of (RPNi x ACRi) / Sum of (RPNi)] x Annual Reduction in Events i = item ... Sign up


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