A benchmarking study by a major corporation showed that quality leaders in the U.S., including those aggressively pursuing Six Sigma goals, rarely achieved defect rates below 1,000 parts per million. The scrap, rework, repair, warranty, and quality control costs among these U.S. quality leaders consumed 6-24% of their production budget.
In contrast, world-class pacesetters, such as Toyota, maintain defect rates below 50 ppm while spending less than 3% of the production budget on the same quality losses. The clear economic leverage of high-quality manufacturing inspires a sense of urgency in achieving a real reduction in defects in an increasingly competitive global market.
from
Make No Mistake!
by Dr. C. Martin Hinckley
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