Revisiting cost of poor quality in the digital era: evidence from global survey organisations

Purpose This study aims to investigate contemporary practices in measuring and managing the cost of poor quality (COPQ), the distribution of costs across the four classic costs of quality categories, the influence of COPQ information on managerial decisions and the continuing relevance of Mikel Harry’s COPQ benchmarks in a digitalised context. Design/methodology/approach Data were collected via an online global survey (175 respondents) and analysed using descriptive statistics, chi-square tests and random forest classification. Findings The findings show that COPQ is often measured only in selected functions; many organisations struggled to analyse COPQ as a percentage of sales revenue and internal and external failure costs frequently remain in double-digit ranges, while prevention cost spending is relatively low. COPQ information is most strongly used at the operational level and less in strategic and tactical decisions. Moreover, Mikel Harry’s benchmark figures (COPQ is equal to 1% at the six sigma quality level and 25% at the three sigma quality level of the sales revenue) are viewed more as heuristics than as universal truths. Originality/value The study offers new evidence on COPQ measurement, links COPQ to operational excellence (OpEx) and Quality 4.0 (Q4.0) initiatives and demonstrates the value of predictive analytics for understanding departmental drivers of quality costs.