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Executive ModeLevel 3: Quality Decision
Business Impact & Audit
Quality-to-Cost Translator
Managers don't care about Cpk, they care about money. See how Cpk impacts warranty costs.
Order Volume
50,000 pcs
1.00
0.6 (Bad)1.33 (Std)2.0 (6σ)
Est. PPM:2,700
Defect Units:135 pcs
Est. Warranty Loss
$3,375
Might exceed order profit!
Risk Calibration Matrix (FMEA)
Don't just look at frequency. Severity(S) x Occurrence(O) = Risk(RPN)
SEVERITY (S)
5
10
15
20
25
4
8
12
16
20
3
6
9
12
15
2
4
6
8
10
1
2
3
4
5
OCCURRENCE (O)
Hover to see Risk Level
Scenario Simulation:
The Quality Iceberg
You only see 10%. 90% is hidden underwater.
Visible Cost
HIDDEN LOSS
Scrap
Rework
Warranty
Engineering Time: $20,000
Premium Freight: $15,000
Overtime: $10,000
Buffer Inventory: $25,000
Brand Damage: $50,000
Lost Future Orders: $80,000
Total Cost of Quality (COQ)
$10,000
WARNING: Ignoring $200,000 hidden costs!
Auditable Decision Trace
Incoming Decision Request
Lot #20260202-A
Primary Metrics
Cpk
1.00
Risk
HIGH
Decision & Signature