Failure Cost Analysis of Plywood Quality Using the COPQ Method

The manufacturing industry focuses on producing high-quality products, addressing defects through control, training, and supplier materials. Cost of Poor Quality (COPQ) refers to expenses for repairing non-conforming products, affecting profits and reducing operating costs. Quality costing systems facilitate improvement efforts and continuous evaluations. This research method is Raw materials from suppliers with inconsistent quality conditions are analyzed for production processes, affecting quality and costs. Corrective actions are taken to reduce costs and ensure appropriate production quality. Failure costs arise when a company produces a product that does not conform or experiences damage during delivery. The leading causes of failure are sizing and cutting processes, with costs ranging from IDR 10,750,000 to IDR 9,500,000. Training workers and quality failures in assembly and finishing processes also contribute to these costs. The cost of grading and crating procedures does not show any failure costs. External failure costs arise from damage to the product or packaging after production, distribution, and consumer reception. The total cost of poor quality is IDR 200,160,666, which is equal to both internal and external failure costs. Conclusion Poor quality costs IDR 200,160,666 for internal failures and none for external costs. These costs include raw material nonconformance, workers’ ignorance, spare parts not checking, and veneer inspection. Quality control and regular checks can reduce or eliminate these costs.