Cost of Poor Quality

Quality isn’t just a goal, it’s a responsibility. 👏

One of the key tools we use to uphold this commitment is something we pull from our little book of great lean formulas called The Cost of Poor Quality (COPQ).

This formula helps us track the total cost associated with quality problems and prevention efforts. It’s a powerful metric that allows us to identify inefficiencies, reduce waste, and continuously improve our processes across all brands within the group.

Simply put, it’s a way to calculate cost: COPQ = Internal Failures + External Failures + Appraisal Costs + Prevention Costs

▪️ Internal Failures: Costs from defects found before reaching the customer

▪️ External Failures: Costs from defects found after delivery

▪️ Appraisal Costs: Costs of inspecting and testing to ensure quality

▪️ Prevention Costs: Investments made to avoid defects in the first place

By applying this formula consistently across all our operations, from manufacturing to customer service, we ensure that every customer in the ADIS AUTOMOTIVE GROUP portfolio benefits.

When we talk about cutting costs and improving quality, this is the approach that allows us to deliver higher-quality products and services, improve customer satisfaction and drive long-term value for our partners and stakeholders.

Posted On:
September 2, 2025

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