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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