Lean manufacturing

Value Added vs Non-Value Added Activities: (Lean Guide)

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Value added activities

In Lean manufacturing and quality management, every activity performed in a process is classified as either value added or non-value added based on whether it contributes to what the customer is willing to pay for. Identifying and eliminating non-value added activities helps organizations reduce waste, improve productivity, lower costs, and shorten delivery time. This concept … Read more

Cost of Poor Quality (COPQ): Meaning, Formula & Examples

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COPQ

The Cost of Poor Quality (COPQ) is the total financial loss a company suffers because of defects, scrap, rework, customer complaints, warranty claims, poor processes, and inefficiencies. COPQ directly affects profitability, customer satisfaction, and brand reputation. Many organizations also refer to cost of quality (COQ) when analyzing their total quality costs, but COPQ specifically focuses … Read more