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Cost of Poor Quality

Six Sigma – iSixSigma Forums Old Forums General Cost of Poor Quality

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  • #38215

    Wilson
    Participant

    Does anyone have a benchmark or industry standard for the cost of quality

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    #114117

    Chris Seider
    Participant

    I believe this topic is covered in “Quality is Free” by Philip Crosby.  I can tell you by experience from integration of new acquisitions–understanding quality losses is necessary to capture all the costs in COPQ. 
    Good luck.
     

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    #114134

    Peppe
    Participant

    Some standards about COQ are ISO9004:2000 and BS6143.
    Benchmarking is driven by best in class in every sector, anyway you can take a look to ASQ guideline.
    Hope this help.
    Rgs, Peppe

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    #114135

    GGBB
    Participant

    Do remember that COPQ benchmarks like most other perfomance measures are not static. You should look at what within your organisation is an area that contributes to most, work on it and move further ahead. You may be in an industry or at a level where you could be better than the (say) best in class, you still nead to work further ahead. Sorry if I sound like a preface to a quality manual, but the secret is in getting started and moving forward… continuous improvement !

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    #114151

    Mike Carnell
    Participant

    Diane,
    There is some data floating around from “Journal for Quality and Participation, Strategy and Planning Analysis”. The Readers Digest version is:
    6 sigma = <10%
    5 sigma = 10-15%
    4 sigma = 15-20%
    3 sigma = 20-30%
    2 sigma = 30-40%
    1 sigma = >40%
    You really need to get the source document to understand the assumptions behind the numbers.
    Good luck.

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    #114156

    Peppe
    Participant

    Mike, you say that a company that work between 5 and 6 sigma can have 10-15% of COPQ ? And at 6 sigma can have until 10% of COPQ
    Is my understanding correct ?
    Rgs, Peppe
     

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    #114181

    Mike Carnell
    Participant

    Peppe,
    The article says a company at 5 sigma is 10-15% COPQ and a 6 sigma company will be <10% COPQ.
    Regards,

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    #183420

    Michael W McLean
    Participant

    This is the Australian Standard for the Cost of Quality and has been available for some time.
    BIS IS 10708:1985 (R2000)Guide For The Analysis Of Quality CostsClick for product information…

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