Illustrative C-Matrix for an electronics company – cost quantification (annual costs in €) with intangible impact assessment
| Causal loss description | Origin location (of causal loss) | Direct cost of causal loss (€) | Attributed rework cost (€) | Attributed scrap cost (€) | Attributed warranty cost (€) | Attributed appraisal cost (e.g. extra test) (€) | Total cost of causal loss (€) | Est. Intangible impact (H/M/L) |
|---|---|---|---|---|---|---|---|---|
| Poor PSU quality | Supplier X (incoming mat. System) | 5,000 | 800 | 3,000 | 1,200 | 0 | 10,000 | M |
| Inadequate soldering training | QMS/HR (training dept.) | 3,000 | 20,000 | 7,500 (Incl. FTF scrap) | 7,200* | 0 | 42,700 | H |
| Incorrect AOI test parameters | ICT (In-Process control) | 1,000 | 0 | 2,250 (FTF scrap) | 3,000 | 0 | 6,250 | L |
| Outdated SMT feeder calibration | SMT M/C A (production) | 500 | 0 | 12,000 | 0 | 0 | 12,500 | L |
| Inadequate design review | Engineering dept. | 2,000 | 5,000 | 1,500 | 4,800* | 500 | 13,800 | H |
| Poor component kitting | Supplier and incoming system | 1,000 | 200 | 6,000 | 0 | 0 | 7,200 | M |
| Total (all causal losses) | 12,500 | 26,000 | 32,250 | 16,200 | 500 | 87,450 (Grand Total COPQ) |
| Causal loss description | Origin location (of causal loss) | Direct cost of causal loss (€) | Attributed rework cost (€) | Attributed scrap cost (€) | Attributed warranty cost (€) | Attributed appraisal cost (e.g. extra test) (€) | Total cost of causal loss (€) | Est. Intangible impact (H/M/L) |
|---|---|---|---|---|---|---|---|---|
| Poor | Supplier X (incoming mat. System) | 5,000 | 800 | 3,000 | 1,200 | 0 | M | |
| Inadequate soldering training | QMS/HR (training dept.) | 3,000 | 20,000 | 7,500 (Incl. | 7,200* | 0 | H | |
| Incorrect | 1,000 | 0 | 2,250 ( | 3,000 | 0 | L | ||
| Outdated | 500 | 0 | 12,000 | 0 | 0 | L | ||
| Inadequate design review | Engineering dept. | 2,000 | 5,000 | 1,500 | 4,800* | 500 | H | |
| Poor component kitting | Supplier and incoming system | 1,000 | 200 | 6,000 | 0 | 0 | M | |
* Shared warranty costs are allocated proportionally based on data from failure analysis. For instance, the total solder-related warranty cost of €12,000 is attributed 60% (€7,200) to Inadequate Soldering Training and 40% (€4,800) to Inadequate Design Review based on a Pareto analysis of field failure codes
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