\u201cI don\u2019t have a quality issue.\u201d That\u2019s what a senior leader told me, rather confidently. He had plenty of challenges, sure, but quality? Not one of them. Why? Because the customers never received a defective product. \ud83e\udd14
\nSlightly in disbelief, I asked, \u201cAt what cost?\u201d \ud83d\ude32
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\nLet\u2019s talk about the cost of poor quality (CoPQ). Too often, organizations define quality strictly in terms of the final product that reaches the customer. If that quality is 100%, great! \ud83c\udf89 But Lean Six Sigma enthusiasts like myself aren\u2019t just focused on the end result, we care about the process. Because if that flawless end-quality comes at the expense of bloated, sluggish, and wasteful operations, then quality is quietly killing profitability. \ud83d\udcb8<\/p>\n
Poor quality is a margin killer. It drains money in two ways. Directly, through rework, scrap, and inefficiencies. However also indirectly, by leaving teams stuck firefighting instead of innovating. So, where does this cost hide in your processes? Mainly in these 3 areas:<\/p>\n
1. Red tape. Bureaucracy, excessive approvals, and compliance overhead slow down value creation. \u26d4
\n2. Rework. Missing information, parts, or small defects create a cycle of correction that devours time and resources. \ud83d\udd04
\n3. Scrap. Whether leftovers of irreparable defects. \ud83d\udeae<\/p>\n
Scrap is easy to spot. The other two? Far more difficult to recognize. They\u2019re hidden in daily operations, disguised as \u2018necessary\u2019 steps. \ud83d\ude12<\/p>\n
Want to uncover your hidden CoPQ? Then run a Value Stream Mapping (VSM) session. Identify every activity in the process and label them as either \u2018Non-Value Adding,\u2019 \u2018Business Value Adding,\u2019 or \u2018Customer Value Adding.\u2019 The costs lie in the first two, and you’ll be surprised how many fall into these categories. Eliminate or reduce them, and you\u2019ll streamline operations, cut costs, and boost speed; all without compromising end-quality. \ud83d\ude80<\/p>\n
So, don’t be misled by 100% end-quality. Dive deep into your processes, uncover hidden wastes, and let the true Cost of Poor Quality reveal the pathway to a more efficient and profitable future. \ud83d\udcb0<\/p>\n
I\u2019d love to hear your thoughts. Email me at tom@theleansixsigmacompany.com \ud83d\udce9 or drop a comment below. \ud83d\udcac<\/p>\n","protected":false},"excerpt":{"rendered":"
A senior leader once told me, \u201cWe don\u2019t have a quality issue, our customers never receive defective products.\u201d But here\u2019s the question every Lean Six Sigma professional should ask in return: At what cost? \ud83d\udcb8<\/p>\n
The Cost of Poor Quality (CoPQ) isn\u2019t just about defects that reach the customer, it\u2019s about the hidden waste embedded in your operations: red tape, rework, and scrap. These issues quietly erode margins, slow down teams, and bury innovation under inefficiency.<\/p>\n
Want to reveal where profit is leaking? Start with a Value Stream Map. You\u2019ll be amazed at how many \u201cnecessary\u201d steps actually add no value at all.<\/p>\n
Don\u2019t be fooled by a perfect final product. True quality lives in the process, and fixing that process is where the real savings begin.<\/p>\n","protected":false},"author":107,"featured_media":13678,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[152,1],"tags":[],"class_list":["post-13675","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-value-stream-mapping","category-lean-six-sigma-topics"],"yoast_head":"\n