How can I measure the costs associated with defects in my product?

How can I measure the costs associated with defects in my product?

To measure defect costs, you can consider direct costs like rework and scrap, as well as indirect costs such as lost sales and customer dissatisfaction.

What methods can I use to calculate these costs?

You can use methods like the Cost of Poor Quality (COPQ) analysis, which includes both internal and external failure costs.

Can you give me an example of how to apply COPQ?

Sure! For instance, if you have a defect rate of 5% and the cost to fix each defect is $100, your internal failure cost would be 5% of your total production costs.

What tools can help me track these costs?

Tools like Six Sigma, Lean methodologies, and software like ERP systems can help you track and analyze defect costs effectively.