Cost of Poor Quality
Definition
Non-compliance with AS/NZS standards and ACL results in product recalls and consumer guarantees breaches, causing direct financial losses from refunds and legal penalties.
Key Findings
- Financial Impact: AUD 100,000+ per major recall; 2-5% revenue impact from refunds and warranty claims
- Frequency: Per non-compliant batch or product failure
- Root Cause: Inadequate or manual quality inspection protocols failing to meet AS/NZS 60335 series and ACL durability/safety requirements
Why This Matters
The Pitch: Household appliance manufacturers in Australia 🇦🇺 waste AUD 500,000+ annually on recalls and refunds due to quality failures. Automation of testing protocols eliminates this risk.
Affected Stakeholders
Quality Managers, Production Supervisors, Compliance Officers
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
Related Business Risks
ACCC Compliance Penalties
Testing Cost Overruns
Non-Compliance with AS/NZS 60335 Safety Standards
Rework Costs from Delayed Safety Compliance Scheduling
Idle Lines from Compliance-Driven Rescheduling
Material Cost Volatility and Bill of Materials Inaccuracy
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