What is The Cost of Failure?
The costs of operational or service failures are sometimes hard to calculate. Mostly we only calculate the part above the Iceberg. The steps below may be helpful to define a successful failure prevention system within your organisation.
Conformance Cost: Prevention
- Quality planning
- Supplier release
- Quality audits
- QM-employees
- Training QM
- Quality promotion
- Measures for failure prevention
Conformance Cost: Appraisal
- Receiving inspection
- In-process inspection
- Final inspection
- Inspection equipment
- Quality report
Failure Cost: Internal
- Commission
- Reoperation
- Loss in value
- Problem in inspections
- Bad time
Failure Cost: External
- Warranties
- Product liability
- Re-work
- Re-engineering
- Loss of customer
- Goodwill
Do you think the Compliance (Safety) is expensive?
Try an Accident !
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