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Juran Iceberg

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JURAN ICEBERG COST OF POOR QUALITY

Hidden COPQ: The 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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