NRMCA Releases Spreadsheet that Helps Calculate Cost of Poor Concrete Quality
NRMCA has released a spreadsheet titled Cost of Poor Quality along with a supporting guidance document that suggests how to help concrete producers calculate the financial impact caused by deficiencies in product quality. This resource was developed by the NRMCA Research Engineering and Standards Committee.
Cost of Poor Quality (COPQ) is the total cost to the company as a result of internal and external failures or deficiencies of ready mixed concrete. COPQ is used as a tool for focusing attention on the quality management system (QMS) in place at the company. By investing and implementing better quality practices, a company can reduce its COPQ and increase profitability. Establishing the company’s reputation as a higher quality supplier can also help increase revenues. Measurement of COPQ will help track and document improvement in quality on an annual basis.