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5. The cost of poor quality
Price rework, rejects, re-inspection and claims, and compare prevention cost with failure cost.
Separate prevention, appraisal, internal failure and external failure costs for one order. Price rework minutes, seconds and rejects, re-inspection, airfreight recovery and buyer claims, then compare the total with what prevention would have cost.
By the end of this module: Price rework, rejects, re-inspection and claims, and compare prevention cost with failure cost.
Prerequisite: Complete module 4 and its readings first.
Who this module is for · Intermediate
- Merchandisers and costing staff building and defending cost sheets
- Industrial engineers working on minutes, efficiency and line balancing
- Factory managers and owners who need to see where margin is lost
This module stands on its own — study it in any order. Your reading, quiz score and capstone are saved on this device, and to your account when you sign in. See your progress for this course.
Go deeper
The inspection and capability side of poor quality, in full:
1. Read these chapters
2. Then work through these stages
Module quiz
5 questions on 5. The cost of poor quality. Answer them all, then check your score before moving on. 4 correct or more is a pass. Your best score is saved on this device, and to your account when you are signed in. This is a self-check, not an accredited assessment.
1. Which of these is an external failure cost?
2. Rework takes 6 extra minutes per garment on 2,000 garments at 0.06 per minute. What does the rework cost?
3. Why do rejects cost more than the labour to remake them?
4. Airfreight is used because production ran late. Where does that cost belong?
5. What justifies spending more on prevention?
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