Business process guide
Cost of Poor Process Quality
Poor quality consumes capacity twice: once when work is done incorrectly and again when it is corrected.
Practical note: process design depends on organization, data, controls, laws, contracts and technology. Treat examples and calculators as educational planning aids, then validate changes against your own requirements.
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Visible costs
Credits, refunds, overtime, manual corrections and complaint handling are easy to see.
Hidden costs
Queue congestion, lost customer trust, management escalation and delayed downstream work are harder to price but often larger.
Use cost to prioritize
Estimating recurring cost helps compare improvement opportunities without treating every defect as equally important.