Cost of Poor Quality
Definition
IATF 16949 mandates continual improvement, defect prevention, and reduction of variation and waste in the automotive supply chain. Failure to comply results in increased production costs from rework and inefficiencies.
Key Findings
- Financial Impact: AUD 50,000+ per year in waste and rework (industry standard 2-5% of production costs for non-compliance)
- Frequency: Ongoing, audited every 3 years with annual surveillance
- Root Cause: Manual processes failing to meet defect prevention and variation reduction rules
Why This Matters
The Pitch: Motor vehicle parts manufacturers in Australia waste AUD 50,000+ annually on rework and variations from IATF 16949 non-compliance. Automation of quality monitoring eliminates this risk.
Affected Stakeholders
Quality Managers, Production Supervisors, Supply Chain Managers
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.
Related Business Risks
Compliance & Penalties
Capacity Loss
Customer Friction Churn
Cost of Poor Quality from Chargeback Disputes
Supplier Indemnification Delays under ACL
Rush Order Costs from ECO Delays
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