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