Estimator
Enter revenue, defects, and failure costs
Core logic: COPQ = internal failure + external failure + appraisal impact tied to poor quality
Apps / COPQ
Cost of Poor Quality Estimator
Convert defects and failure-related costs into a Cost of Poor Quality model, including internal vs. external failure, sigma-linked defect estimation, and ROI projection for improvement projects.
Breakdown
Failure-cost profile
| Category | Amount | Share | Failure Type |
|---|---|---|---|
| Rework | $57,600 | 11.8% | Internal |
Projection
Improvement project view
Post-improvement COPQ estimate: $368,360
Sigma note: if sigma level input is used, defect rate is estimated from the long-term normal tail probability.
Improvement note: ROI projection assumes the chosen defect reduction target primarily reduces failure-related costs and lost opportunity in the same proportion.
Instructions
How to use this app
- Choose whether to enter the defect rate directly or estimate it from a long-term sigma level.
- Enter production volume, revenue basis, and cost assumptions for rework, scrap, warranty, service recovery, inspection, and lost opportunity.
- Click `Estimate COPQ` to calculate total COPQ, COPQ as a share of revenue, and internal versus external failure costs.
- Enter an improvement-project cost and defect reduction target to see projected annual savings, ROI, and payback.
- Use the sigma-linked mode when you know process sigma level but do not yet have a clean measured defect-rate figure.
COPQ models are only as strong as the cost assumptions behind them. Use this as a directional management tool and refine the cost inputs as your accounting and quality data improve.
Lost opportunity is often the hardest value to estimate. Even a rough, conservative figure is useful because it keeps poor quality from looking cheaper than it really is.