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Cost of Poor Quality

Use this calculator to compute the Cost of Poor Quality for your unit / department / organization
  • Enter the number of defects that have been identified before the product / service was released to the customer
  • Enter the average rework cost per internal defect
  • Enter the number of defects that have been identified in the product / service by the customer
  • Enter the average rework cost per external defect (i.e. defects caught by the customer)
  • Enter the cost for any penalties or liabilities or for product recalls in case of external defects
  • Cost incurred for internal defects = Internal Defects Identified x Average cost of internal rework
  • Cost incurred for external defects = Internal Defects Identified x Average cost of internal rework + Penalties / Liabilities / Recall Costs
  • Total cost incurred in case of both internal and external defects

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