Strategic Focus: Confronting The Rising Cost Of Poor Quality

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Executive Summary

As quality failures create costs that extend far beyond scrap, rework and corrective actions, the rising cost of poor quality (COPQ) is becoming an increasingly important business performance concern. This report examines the financial and operational impact of poor quality, the barriers to addressing underlying causes, and how fragmented quality processes and data can limit visibility into recurring problems. It explores how organizations can shift from correcting failures to preventing them, including through connected quality management system (QMS) technologies that link quality data and enable earlier intervention. Quality leaders can use these insights to strengthen prevention, build the business case for quality investment and reduce the recurring costs of poor quality.
The financial impact of poor quality extends beyond product failures
Poor quality is costing organizations more than they realize
Organizations must move from correcting failures to preventing them
Prevention requires enterprise-wide changes to quality management
Figure 1. Operational priorities over the next two years 
Figure 2. Key considerations for the business case for technology investment

About the Authors

Entesar Khalil

Entesar Khalil

Industry Analyst

Entesar is an Industry Analyst in the EHSQ team at Verdantix, delivering research on quality management technologies and the market trends shaping modern EHSQ functions. Speci...

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Nathan Goldstein

Nathan Goldstein

Senior Manager

Nathan is a Senior Manager at Verdantix, specializing in EHS software and the convergence of sustainability, EHS and operational risk. He leads research that helps corporate d...

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