If you are a quality engineer or maybe even the quality manager of a manufacturing company, investing in quality improvements may be a no-brainer. Defects are inherently undesirable, right? Well, yes, but at the level of plant manager, president, or CEO, decisions about where to allocate assets usually require a more complex calculation. Company oversight must take an enterprisewide view of the ROI of quality investments.

One thing every level of management must know to make profitable decisions is what the cost of defects actually is. The true cost of a defect is one of the variables used when quantifying the ROI of investing in any quality improvement initiative or technology. But what is the real cost of defective product that rolls out of your facility? Coming up with an accurate assessment can be tricky. In this interview, Prasad Akella, CEO and founder of Drishti, offers some valuable insight.

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