Low Cost Costs (COPQ) is the total cost of the errors produced by the process. There have been many controversies, some are heated about the cost categories to be taken into account in this important process. Many organizations make a mistake if you only see COPQ calculation. The problem is that it's just the tip of the iceberg. One way to view these costs is to see what cost types are in the process & # 39; the operating budget will be reduced if the process works flawlessly. From this point of view, the low quality costs become the difference between the cost of producing a product or a service, minus production costs without error.
The process COPQ can be categorized into three categories: prevention costs, evaluation costs and breakdown costs. Damage costs can be further divided into internal failure costs and external breakdown costs. Prevention costs relate to any activity aimed at preventing errors. This includes quality improvement efforts, redesign, and new process planning. These activities do not add value to the customer's eyes.
Survey costs are related to audit activities. These activities are designed to prevent existing mistakes from the customer. Returning to the Define Phase, remember that any activity related to fixing errors has not been enhanced. Even though the customer may be happy that errors have been made before the product or service has been delivered, they do not want to pay for the costs of removing bad outputs.
Defective costs are related to mitigating or correcting errors. All internal and external error activities do not add value. Internal error costs arise before the defective product or service is delivered to the customer. For example, debris and replanting. An external error is generated after delivery of the defective product or service. Examples of warranty costs, customer reimbursement, customer complaints, and litigation.
The developer team needs to explore all possible cost categories to cover the cost of poor quality. The repair team has more than one data set. Understanding the cost structure surrounding the process can be extremely valuable when analyzing the process. performance, and when trying to determine which process is affected by problem areas.
Source by sbobet