What is Cost of Poor Quality (COPQ) in Garment Industry

Total money a garment factory can save if there is no quality issue in the products at all is the cost of poor quality. Cost of poor quality can be explained in another way - the total money factory spends to make the product up to an acceptable quality level. Money spends in garment and material inspection, quality personnel training and in labour for repair work.

In the garment industry, most of the processes like cutting, printing, stitching, washing may produce defective garments. So to detect defective pieces, factories install checkpoints (inspection process) in the processes.

Cost of poor quality

All defective pieces need to be screen out from the good pieces through checking and inspection. Later defective pieces are repaired. Some defective garments may be damaged and you could not include those damaged garments in your shipment. You have to reject those garments.

Examples of the cost of poor quality in a garment manufacturing unit:

Repair works are the additional cost as additional man-hours needed.

For repair, work factory needs additional time to complete the shipment – delay in shipment may happen. Shipment delay, in turn, may cost factory following ways shipping goods at discount rate or/and factory may need to send the shipment by air.

Rejections are a loss of potential revenue. Also, the cost of raw materials of those rejected garments.

Inspection, checking and rechecking garments are also a cost due to poor quality. Quality checkers are employed to check garments. There are cutting room checkers, end-of-line checker, in-line checker, finishing checker and internal shipment auditor.

Cost of poor quality is categorized as internal failure cost, external failure cost, prevention cost and appraisal cost.

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