Cost of Poor Quality

Use this calculator to compute the Cost of Poor Quality for your unit / department / organization

Internal Defects Identified
Enter the number of defects that have been identified before the product / service was released to the customer
Average cost of internal rework
Enter the average rework cost per internal defect
External Defects Identified
Enter the number of defects that have been identified in the product / service by the customer
Average cost of external rework
Enter the average rework cost per external defect (i.e. defects caught by the customer)
Penalties / Liabilities / Recall Costs
Enter the cost for any penalties or liabilities or for product recalls in case of external defects
Internal Failure Cost
Cost incurred for internal defects = Internal Defects Identified x Average cost of internal rework
External Failure Cost
Cost incurred for external defects = Internal Defects Identified x Average cost of internal rework + Penalties / Liabilities / Recall Costs
Cost or Poor Quality
Total cost incurred in case of both internal and external defects

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