Unscheduled disruption to your operations is incredibly expensive. Estimates put the cost as high as $1 million or more. And that’s only half of the story.
JD Power’s 2017 Vehicle Dependability Study found an average of 156 problems for every 100 vehicles and the cost in recalls exceeding $22 Billion in 2017 alone.
Our internal estimates show that the cost starts immediately, from shipping all the way up to recall. A quality defect detected on the assembly line can cost upwards of $250,000 per incident.
And while most people think of containment, lost productivity, and part replacement as primary costs, there are others. Damage to equipment that is using a defective part. Potential safety issues. Retraining or reengineering to address issues that result from a defective part. These are all very real costs that can make the impact of even a short bit of downtime astronomical.
Recalls don’t just have a direct productivity cost. They also influence organizational performance and the overall reputation of a brand. Prevention is the best course of action, but how do you implement a program that is proactive without undercutting your efforts? See the full potential impact a single unscheduled disruption can have on your organization in our detailed visual guide below:
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