Meaning ● Cost of Poor Quality (COPQ) represents the expenses incurred by an SMB when products or services fail to meet required quality standards, significantly impacting profitability and sustainable growth. In the context of SMB growth, COPQ can stifle expansion by draining resources that could be invested in new markets or product development. Automation initiatives designed to improve efficiency can be undermined by high COPQ, negating potential savings. Implementation efforts, such as deploying new software systems, can also be derailed if poor data quality or faulty processes lead to rework and project delays. Consequently, successful SMBs prioritize quality management to minimize COPQ and maximize returns on their investments in automation and strategic implementations, recognizing it is a measurable financial metric. Therefore, a reduction in COPQ directly correlates to improved operational efficiency and increased profitability for the SMB. Ultimately, COPQ is not just an expense; it is an indicator of underlying systemic problems hindering an SMB’s ability to achieve its strategic objectives and sustain long-term success within the market.
