Guest Post by Roxann Dawson (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
In order to improve business performance, manufacturing companies need to reduce the levels of non-conformance and attendant failure costs stemming from poor product design and development. Failure costs generally make up the largest cost category in a manufacturing business and include those attributable to rework, scrap, warranty claims, product recall and product liability claims. This represents lost profit to a business and as a result, it is the area in which the greatest improvement in competitiveness can be made. [Read more…]