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Project Management & Agile · Intermediate

Cost of Poor Quality (COPQ)

Costs that would disappear if every activity were performed without defects.

Definition

COPQ includes internal and external failure costs and is often used in Six Sigma charters to justify projects. It is the nonconformance portion of cost of quality.

Example

Rework, refunds, and warranty claims total $1.2M per year.

Exam tip

COPQ = internal + external failure costs.

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