The cost of low quality

For a company that has the possibility to buy a widget from more than one supplier or manufacturer, it is difficult to evaluate which supplier is providing the best value, based solely on their price. The invisible costs carry the most risk, and overall they have the largest impact on overall cost. So how could price be the deciding factor?

The fact is that risk and soaring costs go hand in hand. And while a company may work hard to improve process, lower risk and improve predictability to drive down internal costs, the causes of low quality may come from sources that are not under company’s control. Or apparently not, anyway. It is in fact quite common that supply side issues are constant disrupters, adding to costs of inspections,

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Custom printers vs Standard: The Debate of Complexity, Cost and Quality

Eric Leclair, co-founder and President of a rubber manufacturer that serves several verticles including the Medical industry, wrote an article a while back called Custom parts vs. standard parts-demystifying the debate.
In this article Eric weighs the pros and cons of using standard parts in new product designs, versus the apparently higher cost and risk of more desirable outcomes that customized components can bring to innovative applications. He states that many firms force “standardization” on their designers and engineers because they believe that this drives down costs, both upfront design product design costs and during the entire life cycle of the product: inventories can be managed better, multiple suppliers can be engaged and technical support and customer service is facilitated.

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