How to build a TQM baseline (defects, COPQ, Cpk, NPS) before improvements

Build a pre‑improvement baseline that captures quality, cost, capability, and customer signals. Define defects and opportunities per CTQ; log volumes and escapes to compute FPY/RTY and a Pareto of defect types. Quantify COPQ (internal/external failure, appraisal, prevention). For stable continuous data, calculate capability (Cp/Cpk) with clear specs; for services, pair with lead time/cycle time. Add customer voice: NPS (promoters minus detractors), complaint themes, and time‑to‑resolution. Use consistent operational definitions, a single system of record, and a 2–4 week sampling window stratified by product/service family. Verify measurement systems (MSA). Package the baseline into one page with trends, capability, COPQ, and top causes to anchor targets and project selection.

A solid TQM baseline makes improvement credible and measurable. Capture four lenses before you change anything: quality, cost, capability, and the customer.

1) Quality signals. Define defects and opportunities for each CTQ (critical-to-quality). Collect volumes, defects, and escapes to compute first-pass yield (FPY), rolled throughput yield (RTY), and a Pareto of defect types. Separate internal vs external failures.

2) Cost of Poor Quality (COPQ). Quantify internal failure (scrap, rework), external failure (warranty, returns, penalties), appraisal and prevention. Use a simple template and finance-approved factors so numbers are trusted.

3) Capability. For stable continuous data with meaningful specs, calculate Cp/Cpk and verify stability with control charts. In services or non-normal cases, pair capability with lead time/cycle time and defect rates; note distribution assumptions.

4) Customer voice. Track net promoter score (NPS), complaints, themes, and time-to-resolution. Tie complaints to CTQs where possible.

Execution: Use consistent operational definitions and a single system of record. Sample for 2–4 weeks, stratified by product/service family to avoid masking variation. Verify measurement systems (MSA) so you aren’t chasing noise. Package the baseline on one page—trends, capability, COPQ summary, and top causes—so leaders can approve targets and pick projects with confidence.

Back to Evaluation of TQM