Product failures, scrap, and recalls can have a devastating impact on a manufacturer’s reputation and bottom line. For this reason, tracking and solving manufacturing quality problems and continuous improvement are crucial in every industry.
The cost of low quality is not always easy to assess, but it’s usually expensive. The average cost of a product recall is around $10 million with some reaching significantly higher.
Beyond the hard costs of a recall, it’s hard to put numbers on customer dissatisfaction and shareholder confidence, but a damaged reputation can last a lifetime. Product recalls also open the door for competitors.
