Illustrations of internal failure cost, Strategic Management

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Illustrations of internal failure cost

The internal perspective may control performance by assessment of internal quality failure.  Costs incurred before customer has received the good or service. 

  • Re-inspection of materials, components and finished goods after a high level of substandard goods have been identified
  • The scrap cost or wastage of any materials or finished goods
  • Retraining cost of staff due to ineffective problems identified
  • Rework of work-in-progress and finished goods due to unsatisfactory work

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