Practice Quiz

Six Sigma Black Belt

Category - Black Belt

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James is a Black Belt practitioner in a medium-sized organization. He engages in continuous assessment of projects and their potential impact on the organization’s financial well-being. The cost of defects on an organization’s finances is also referred to as:
  1. COGQ
  2. COPQ
  3. CTQ
  4. QTC
Explanation
Answer: B - Cost of Poor Quality or COPQ is the cost of defects on an organization’s finances.

Key Takeaway: When an organization has a high percentage of defective products or services, it incurs a greater cost of re-work, warranties, returned items, and customer complaints’ management. COPQ provides a numerical figure of how much these defects cost the organization.
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