Cost of Quality: The Hidden Truth About Your Ultimate Quality Metric
In industries from aerospace to medical devices to consumer packaged goods, companies can’t afford to let defective products reach customers. The average cost of a significant recall is $12 million, with large events costing far more.
While only a small percentage of recalls are typically related to production issues, scrap, rework and warranty related costs can total into the millions (or tens of millions) for an individual manufacturer with reputational risk being unquantifiable.
Customers today expect products with zero defects and 100% on-time performance, yet faster rates of production development cycles and more varied product mixes introduce opportunities for errors—and rising risks around cost of quality.
Understand the common misconceptions around quality costs and how manufacturers can use the 1-10-100 rule to push down cost of quality. We also look at how layered process audits leverage the power of prevention and early detection to reduce costs—and how digital transformation is helping manufacturers defy traditional cost of quality trends.