- D.A. Hartman
- Resources
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Cost of Poor Quality
The cost of poor quality is at the forefront of every plant manager's mind. While the direct costs of producing defective components are relatively easy to quantify, such as scrap, rework, and recalls; the indirect costs can significantly impact a company's profitability, such as increased audits, lost sales, and declining brand reputation. As a consequence, the majority of a manufacturer's time and resources are spent tightening tolerances, ensuring compliance, and/or increasing post-process destructive and non-destructive testing. While such efforts are important to a quality-assured and quality-controlled process, there are diminishing returns for higher standards through increased destructive and non-destructive testing. In most manufacturing environments, the process itself is treated as a black box, where the inputs are tightly controlled and the resulting product is thoroughly tested but the in-process behavior is largely overlooked.