To calculate the Cost of Poor Quality for a rework loop, which one of the following best describes the information required?

To accurately calculate the Cost of Poor Quality (COPQ) in a rework loop, it is essential to consider both the defect rate and the volume of work. The defect rate provides insight into how frequently defects occur in the process, while the volume of work indicates the amount of product or service affected by these defects.

By using both pieces of information, you can quantify the overall impact of poor quality more effectively. The defect rate alone would not provide a complete picture because it does not take into account how many units are produced or need to be reworked. Similarly, the volume of work on its own does not reflect the severity of the issues being encountered if the defect rate is low.

Thus, combining both the defect rate and the volume of work allows for a comprehensive assessment of the costs associated with rework, enabling organizations to identify, analyze, and ultimately mitigate the costs tied to poor quality. This thorough understanding is crucial for making informed decisions on improving processes and enhancing overall quality management.