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Juran Iceberg

The document discusses Juran's iceberg theory of the cost of poor quality, which states that poor quality results in both visible costs like waste and rework as well as hidden costs related to dealing with chronic quality problems, such as excess inventory and customer complaints. These hidden costs of poor quality are estimated to range from 15-25% of total sales. The document lists specific examples of hidden costs of poor quality, such as excess overtime, recalls, and premium freight costs.

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abhibraveheart
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989 views1 page

Juran Iceberg

The document discusses Juran's iceberg theory of the cost of poor quality, which states that poor quality results in both visible costs like waste and rework as well as hidden costs related to dealing with chronic quality problems, such as excess inventory and customer complaints. These hidden costs of poor quality are estimated to range from 15-25% of total sales. The document lists specific examples of hidden costs of poor quality, such as excess overtime, recalls, and premium freight costs.

Uploaded by

abhibraveheart
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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JURAN ICEBERG COST OF POOR QUALITY

Hidden COPQ: The costs


incurred to deal with
these chronic problems
COPQ ranges from
15-25% of Sales.
Waste
Rejects
Testing Costs
Rework
Customer Returns
Inspection Costs
Recalls
Excessive Overtime
Pricing or Billing Errors
Excessive Field
Services Expenses
Excessive
Employee
Turnover
Complaint Handling
Planning Delays
Premium Freight Costs
Overdue Receivables
Development Cost of
Failed Product
Excessive
Systems Cost
Time with
Dissatisfied
Customer
Unused Capacity
Customer Allowances
Excess Inventory
Lack of Follow-up
on Current Programs
Incorrectly
Completed Sales
Order
High Costs Late Paperwork

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