INDEX Table Tab Descriptions'

1 - Cost of Quality CoQ

2 - Cost of Poor Quality CoPQ
 Cost of Quality (CoQ)
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Current Cost Summary Year To Date

Current Month
Description
Quality As a Percent of Quality As a Percent of
Costs Sales Other Costs Sales Other
Prevention Costs
Marketing/Customer/User $1,000.00 5% 10% $2,000.00 5% 10%
Product/Service/Design Reviews
Purchasing
Operations
Quality Planning and Administration
Prevention Training
Other Prevention Costs
Total Prevention Costs $1,000.00 5% 10% $2,000.00 5% 10%
Prevention Targets $2,000.00 10% 20% $4,000.00 10% 20%

Appraisal Costs
Inspection and Test
Purchasing Appraisal
Operations Appraisal (SPC)
External Appraisal
Quality Audits
Misc Quality Evaluations
Total Appraisal Costs $0.00 0% 0% $0.00 0% 0%
Appraisal Targets $0.00 0% 0% $0.00 0% 0%

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
Warranty Changes
Complaint Adjustment
Returned Material
Allowances
Total Failure Costs $0.00 0% 0% $0.00 0% 0%
Failure Targets $0.00 0% 0% $0.00 0% 0%
Total Quality Cost $1,000.00 5% 10% $2,000.00 5% 10%
Total Quality Targets $2,000.00 10% 20% $4,000.00 10% 20%
Current Month Year to Date
Base Data Budget Actual Budget Actual
Net Sales $20,000 $40,000
Other Base $10,000 $20,000

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 Cost of Poor Quality (CoPQ) and ROI Calculator
Return to Index Table INDEX

Duration Cost of Quality (DCOQ) 1000 Total Customers/Transactions

Average Transaction $20 15% Turnover rate
Frequency (Transaction/year) 50 150 Number of Lost Transactions
Total per year $1,000 96% % due to internal causes
Years per customer 7 4% % due to external causes.
DCOQ $7,000 144 Number of Preventable Losses

Transaction Description: (e.g., PM, CWT, service delivery, etc.)

Total
Average Hourly Cost of Other Failure Total Cost of Non-
Tasks Cost of Task Business Assumptions
minutes Rate Materials Costs Conformance
Cost

1. Customer wait time and materials 5.0 $15 $1.25 $0.00 $1.25
2. Testing $0.00 $0.13 $0.13
2. Take order $0.00 $0.00 $0.00
3. Prepare and deliver order $0.00 $0.00 $0.00
4. Issue bill/invoice $0.00 $0.00 $0.00
5. Process payment $0.00 $0.00 $0.00
6. Activity 6 $0.00 $0.00 $0.00
7. Activity 7 $0.00 $0.00 $0.00
8. Activity 8 $0.00 $0.00 $0.00
9. Activity 9 $0.00 $0.00 $0.00
Total Cost Per Failure $1.25 $0.13
Transactions/day 1000 1000

Transaction Cost Per Day $1,250 $125

Rework and Scrap Costs 5.0 $15 $1.25 $0.50 $0.13 $1.88
Transactions reworked/day 10 10
Rework/Scrap Costs Per Day $1.25 $18.75 1.0% Error Rate
Annual Transaction Cost $276,526 $31,769 221 Days/year
Outages/year
1. Lost Opportunity Costs $0 $1,008,000
2. Lost Assets Costs $0 $0
3. Lost Business Costs $0 $0
4. Additional Failure Costs
Annual Failure Costs $276,526 $1,039,769
Average Calculated
Basic tasks to fix the problem Loaded rate Expenses Total
min/60 cost
1. Customer wait time and materials 6.0 $50 $1 26 500 527.25

Return on Investment and Payback

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 Cost of Poor Quality (CoPQ) and ROI Calculator
Target Reduction 5% $51,988.44
Prevention Costs $50.00
ROI $1040:$1
Payback Period (days) 0

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