NRMCA’s Research Engineering and Standards Committee (RES), as part of its initiative to improve quality, has developed a resource for companies to quantify the cost of poor quality (COPQ) and to justify investment in quality management systems. A more user-friendly version of this resource, Cost of Poor Quality, is now in an Excel spreadsheet format. The resource includes a supporting user manual that suggests how to estimate the various cost items and is intended to help concrete producers calculate the financial impact caused by deficiencies in product quality.
This user-friendly version was developed last year by an NRMCA Developing Industry Leaders (DIL) group consisting of Michael Chancellor, Mauricio Curbelo, Alex Olin and Trace VanOrden. The DIL is an annual program administered by NRMCA as part of its workforce development initiatives.
COPQ is the total cost to the company as a result of internal and external failures or deficiencies of ready mixed concrete. It can be 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 minimize its COPQ and increase profitability. Establishing the company’s reputation as a higher quality supplier will help increase revenues. Measurement of COPQ will help track and document improvement in quality on an annual basis.
The COPQ form and user manual can be downloaded here. For more information, contact Karthik Obla at kobla@nrmca.org.
National Ready Mixed Concrete Association