COPQ is typically broken down into four main components:
Internal Failure Costs: These are costs associated with defects found before the product reaches the customer. Examples include rework, scrap, and downtime. External Failure Costs: These costs occur after the product has been delivered to the customer. They include returns, repairs, and warranty claims. Appraisal Costs: These are costs incurred to detect defects before products reach the customer, such as inspection, testing, and quality audits. Prevention Costs: These costs are associated with preventing defects from occurring in the first place, including training, process planning, and quality improvement initiatives.