COPQ Engine V1

Owner Layer Cost of Poor Quality V1
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Cost of Poor Quality overview
Staff
What Is Happening?
Management
What Is Really Happening?
Owner
What Should Be Happening?
What This Engine Does
This engine helps business owners understand the financial impact of operational problems.
It does not determine root causes — that is done in the Management layer.
It estimates the cost of poor quality so owners can make better decisions about where to invest in improvement.
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Problems
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Monthly COPQ
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Annual COPQ
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High Cost
Highest Cost Problem
No problems entered yet
How to Use This Engine
1.Go to Problem Definition and record each operational problem you want to analyse.
2.Go to Cost Categories and enter the monthly cost figures for each problem.
3.View Cost Calculator to see Internal Failure, External Failure, and Total COPQ for each problem.
4.Review Cost Summary to see all problems ranked by annual cost.
5.Use Improvement Savings to estimate the financial benefit of reducing each problem.

Problem Definition

What operational problems are you analysing?
Load Example
Load a realistic set of problems with cost data for your industry.

Cost Categories

Enter monthly cost figures for each problem
All amounts are monthly estimates in your local currency. Enter zero where a cost does not apply. Costs are saved automatically as you type.
Select a problem above to enter its costs.

Cost Calculator

Computed costs for all problems
Monthly costs are the values you entered in Cost Categories. Annual cost = Monthly × 12. Enter costs in the Cost Categories section first.

Cost Summary

All problems ranked by annual cost — highest first
The highest-cost problems should normally receive attention before lower-cost problems. This is guidance only — the owner makes the final decision.
Cost Level Guide
High Cost
Annual COPQ ≥ 5,000,000
Medium Cost
Annual COPQ ≥ 1,000,000
Lower Cost
Annual COPQ < 1,000,000

Improvement Savings

Estimate the financial benefit of reducing each problem
⚠ Potential savings are estimates only and should be validated after improvements are implemented.

Owner Notes

Observations, context, and decisions
Record any observations about these costs, their sources, assumptions made, or decisions taken. Notes are saved automatically.

Export & Reset

Save your work or start fresh
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Problems
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With Costs
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Monthly COPQ
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Annual COPQ
Export Options
Reset
This will permanently delete all problems, costs, savings estimates, and notes from this browser.
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