What Is COPQ And What Are The Four Categories Of Costs?


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Mehreen Misbah answered
COPQ is an abbreviation of the phenomenon of 'cost of poor quality' that pronounces the perils and setbacks that result from the undesirable quality of a product or service that fails to cater to customer expectations and hence results in a much lower degree of customer satisfaction. In other words, cost of poor quality contains in itself all those disadvantages that a poor quality brings to various areas of a brand that include its reputation, its future, even the organization that it is linked with.
As for the four categories of costs, the first category is called internal failure costs that elucidate those costs that are associated with all the flaws and defects before the consumer has come in encounter with a specific product or service. Coming towards the external failure costs, it is the opposite of internal failure costs in the sense that this category includes all those costs that result after the consumer has come in contact with the product or service. Appraisal costs constitute the third category of costs, pronouncing all those costs that are incurred to determine the conformance degree in the case of meeting quality requirements. The last category is that of prevention costs that a company incurs to minimize the failure (both internal and external) and appraisal costs.

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