Engineering change orders Time value of money More set-ups Working capital allocations Lost customer loyalty Lost sales/opportunity Late delivery

Expediting costs Excess inventory Long cycle times Excessive material orders/planning Degraded brand image

RMA Warranty Rejects/scraps Inspection

Field services Yield Gross margin erosion Rework/re-grade

“Life is inherently risky, but there is only one big risk you should avoid at all costs and that is the risk of doing nothing.” - Denis Waitley, Motivational Speaker

WHAT ARE VISIBLE COSTS?

ASQ'S DEFINITION OF COPQ

WHAT ARE HIDDEN COSTS?

QUALITY CHAMPIONS AROUND THE WORLD RELY ON ETQ RELIANCE FOR PRODUCT QUALITY, COMPLIANCE AND EMPLOYEE HEALTH & SAFETY

"ETQ is an extremely powerful tool you have your sandbox capability and you have the ability to adapt to not only internal changes but external changes which is something that we absolutely needed. " Adam Ryley, Trane Technologies

EXPLORE SOME RESOURCES TO LEARN HOW OUR QUALITY CHAMPIONS MANAGE THE COPQ

TRANE REDUCED WARRANTY COSTS BY 70%

WHY THE COST OF DOING NOTHING IS A QUALITY CONCERN

FIRST TIME BUYERS GUIDE

ASQ’s definition splits COPQ into four distinct categories:

Preventive Costs Appraisal Costs Internal Failure Costs External Failure Costs

Terms and conditions

ETQ is the leading provider of quality, EHS and compliance management software, trusted by the world’s strongest brands, like Kimberly-Clark, Herman Miller and Rivian. More than 600 global companies, spanning industries including automotive, biotech, food and beverage, manufacturing, medical devices and pharmaceuticals use ETQ to secure positive brand reputations, deliver higher levels of customer loyalty and enhance profitability. ETQ Reliance offers built-in best practices and powerful flexibility to drive business excellence through quality. Only ETQ lets customers configure industry-proven quality processes to their unique needs and business vision. ETQ was founded in 1992 and has main offices located in the U.S. and Europe. To learn more about ETQ and its product offerings, visit www.ETQ.com.

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The visible cost of poor quality:

The hidden cost of poor quality:

“Many organizations will have true quality-related costs as high as 15-20% of sales revenue, some going as high as 40%of total operations.” - ASQ

ETQ Quality Management Software Cost of Poor Quality