Interactive Tool

What is poor quality actually costing you?

Enter your own figures. See the gap between what your reporting system captures and what's really leaving the building — in real time.

Annual RevenueUsed to calculate COPQ as a percentage of revenue
$
Run The Numbers
Traditional COPQ What gets reported
ScrapMaterial and labor written off
$
ReworkLabor and overhead to correct nonconforming product
$
Warranty & Field ReturnsClaims, replacements, field repair cost
$
Appraisal & InspectionStandard inspection, test, and audit cost
$
Penalties & SortingContainment sorting and customer-imposed penalties/chargebacks — nonstandard, but monitored
$
Premium FreightExpedited/containment shipments — tracked in traditional reporting
$
Supplier Recoveries — Material, Appraisal & InspectionChargebacks/reimbursements from suppliers for defective material — nets against scrap, appraisal & inspection above
$
Traditional COPQWhat you're telling leadership
$0
0% of revenue
// Reported COPQ — the number in the monthly quality metrics deck, net of supplier recoveries.
Real COPQ With hidden costs included
Traditional COPQ (carried over)Same total as the left column
$0
Rework Inventory Carrying CostCost of capital tied up holding rework WIP — distinct from rework labor already in Traditional
$
Structural Over-InspectionInspection layers added after escapes, now baked into standard cost
$
Excess Inventory / Yield BuffersWorking capital tied up to compensate for yield loss
$
Customer Relationship ErosionRevenue loss from quality-driven sourcing shifts
$
Schedule Disruption & Capacity LossRescheduling/extending line runs to replace defective material, plus downtime from quality holds
$
Supplier Nonconformance — Net Unrecovered Soft CostInspection, sorting, and holding costs on supplier defects not covered under the supplier agreement. Depends entirely on your specific chargeback terms — estimate only the uncovered portion.
$
Supplier Recoveries — DowntimeOnly if your supplier agreement explicitly covers downtime cost — most don't
$
Real COPQWhat you're actually spending on poor quality
$0
0% of revenue
// The number that doesn't make it into the deck.
Live Delta
Reported
$0
0% of revenue
Actual
$0
0% of revenue
Hidden Gap
$0
Not currently visible in reporting
Multiplier
1.0×
Actual ÷ Reported

// These figures are estimates based on the categories you enter. Supplier recovery lines are credits — enter only what your specific supplier agreements actually cover, since chargeback terms vary and this tool can't assume full recovery, partial recovery, or none. Every organization's cost structure is different; this tool is meant to make the gap visible, not to produce an audit-grade number. Industry research consistently places the hidden-cost multiplier between 2× and 10× the reported figure.

Now you've seen the gap. What are you doing about it?

Reported COPQ tells you what happened last quarter. ZDOS is built to shrink the number on the right — structurally, not just on paper.

See How The Gap Forms Get in Touch