The Cost of Poor Quality

Abstract

The Operating Telephone Companies (OTCs) spend billions of dollars every year to purchase new products. The OTCs would like to ensure that they receive products and services at quality levels that meet their needs. Bell Communications Research (Bellcore) Quality Assurance conducted a study during the summer of 1984 to quantify the Cost of Poor Quality (COPQ) for products purchased by the OTCs and to demonstrate a method of calculating the COPQ.