Cost of Poor Quality
Definition
Poor quality control in sporting goods manufacturing results in defects like weak assembly, improper labeling, and performance failures, triggering costs from rework, customer refunds, and warranty claims under consumer protection laws.
Key Findings
- Financial Impact: AUD 20,000-100,000 per major defect batch in rework/refunds; 2-5% of production costs in warranty claims
- Frequency: Per defective batch or annual recurring
- Root Cause: Manual inspection delays and inconsistencies in defect monitoring
Why This Matters
The Pitch: Sporting goods manufacturers in Australia 🇦🇺 waste AUD 20,000-100,000+ annually on rework and refunds from defect rates. Automation of defect rate monitoring 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.
Related Business Risks
Compliance Penalties
Cost Overrun from Waste
GST Assessment on Import Valuation Errors
BOM Inaccuracy Delays
Trade Description Labelling Non-Compliance
Customs Duty Misclassification
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