The Butterfly Defect

Do you know the true cost of your defects?

Ryan E. Day

December 10, 2020

If you are a quality engineer or maybe even the quality manager of a manufacturing company, investing in quality improvements may be a no-brainer. Defects are inherently undesirable, right? Well, yes, but at the level of plant manager, president, or CEO, decisions about where to allocate assets usually require a more complex calculation. Company oversight must take an enterprisewide view of the ROI of quality investments.

One thing every level of management must know to make profitable decisions is what the cost of defects actually is. The true cost of a defect is one of the variables used when quantifying the ROI of investing in any quality improvement initiative or technology. But what is the real cost of defective product that rolls out of your facility? Coming up with an accurate assessment can be tricky. In this interview, Prasad Akella, CEO and founder of Drishti, offers some valuable insight.

    Get formulas and worksheets for calculating the cost of uncertain defects in your product offerings.

About The Author

Ryan E. Day’s picture

Ryan E. Day

Ryan E. Day is Quality Digest’s project manager and senior editor for solution-based reporting, which brings together those seeking business improvement solutions and solution providers. Day has spent the last decade researching and interviewing top business leaders and continuous improvement experts at companies like Sakor, Ford, Merchandize Liquidators, Olympus, 3D Systems, Hexagon, Intertek, InfinityQS, Johnson Controls, FARO, and Eckel Industries. Most of his reporting is done with the help of his 20 lb tabby cat at his side.