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Indirect Cost of Poor Quality (COPQ) Reached 15-25% of Sales

Posted in Lean Six Sigma

There is a bigger problem in poor quality, that is a huge cost burden and require special identification to solve it. Because of this problem not tangible. Iceberg below the water surface was more complex and highly detrimental to the company if not managed properly.

Among the company’s cost burden is Expediting Costs, Lost of customer loyalty,Long cycle time, engineering change, Late Delivery, Excess Inventory.

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