FREE CALCULATOR · QUALITY · NON-CONFORMANCE
Quality Non-Conformance Cost Calculator
Calculate the total annual cost of your non-conformances: investigation, product rejection or rework, and resulting customer claims.
How is it calculated?
The cost of poor quality includes three main components: the cost of investigating each non-conformance, the cost of rejected or reworked product, and the cost of customer claims arising from a share of those non-conformances.
- Investigation cost = NCs/year × Average investigation cost per NC
- Rework cost = NCs/year × Average rejected/reworked product cost
- Claims cost = NCs/year × % NCs with claim × Average claim cost
- Total cost = sum of the three components
According to industrial quality studies, the total cost of poor quality can represent between 5% and 20% of revenue in companies without a robust quality management system.
Want to reduce your cost of poor quality?
IgeraIndustria indexes your quality procedures, NC reports and corrective actions to give your team an immediate answer.