The document discusses Juran's iceberg theory of the cost of poor quality, which states that poor quality results in both visible costs like waste and rework as well as hidden costs related to dealing with chronic quality problems, such as excess inventory and customer complaints. These hidden costs of poor quality are estimated to range from 15-25% of total sales. The document lists specific examples of hidden costs of poor quality, such as excess overtime, recalls, and premium freight costs.
The document discusses Juran's iceberg theory of the cost of poor quality, which states that poor quality results in both visible costs like waste and rework as well as hidden costs related to dealing with chronic quality problems, such as excess inventory and customer complaints. These hidden costs of poor quality are estimated to range from 15-25% of total sales. The document lists specific examples of hidden costs of poor quality, such as excess overtime, recalls, and premium freight costs.
The document discusses Juran's iceberg theory of the cost of poor quality, which states that poor quality results in both visible costs like waste and rework as well as hidden costs related to dealing with chronic quality problems, such as excess inventory and customer complaints. These hidden costs of poor quality are estimated to range from 15-25% of total sales. The document lists specific examples of hidden costs of poor quality, such as excess overtime, recalls, and premium freight costs.
The document discusses Juran's iceberg theory of the cost of poor quality, which states that poor quality results in both visible costs like waste and rework as well as hidden costs related to dealing with chronic quality problems, such as excess inventory and customer complaints. These hidden costs of poor quality are estimated to range from 15-25% of total sales. The document lists specific examples of hidden costs of poor quality, such as excess overtime, recalls, and premium freight costs.
incurred to deal with these chronic problems COPQ ranges from 15-25% of Sales. Waste Rejects Testing Costs Rework Customer Returns Inspection Costs Recalls Excessive Overtime Pricing or Billing Errors Excessive Field Services Expenses Excessive Employee Turnover Complaint Handling Planning Delays Premium Freight Costs Overdue Receivables Development Cost of Failed Product Excessive Systems Cost Time with Dissatisfied Customer Unused Capacity Customer Allowances Excess Inventory Lack of Follow-up on Current Programs Incorrectly Completed Sales Order High Costs Late Paperwork
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