Sourcing · The total cost comparison · Element
The quality cost
What defect rate and variability cost downstream.
The part
What it is
A cheaper input with a higher defect rate costs the inspection, the rework and the delay it causes, all of which sit in other budgets.
Variability costs even where the average quality is acceptable, because the process has to absorb it.
The smallest level
The attributes it carries
Each attribute is one of the framework’s shared types. What a date is, and how it is written, is defined once for the whole model — the note here says what it means in this particular place.
Cost per defect
What a defect costs downstream, which is where the real difference sits.
Money shared type
The other elements in the total cost comparison
The price
The unit price and what it includes.
LearnThe lead time cost
What lead time and its variability cost in inventory and flexibility.
Learn