What is more important internal or external failure cost?

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1062141

2026-02-06 11:00

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Both internal and external failure costs are crucial for a business, but their importance can vary based on the context. Internal failure costs, associated with defects found before delivery to the customer, can significantly impact efficiency and profitability. However, external failure costs, arising from issues discovered after delivery, can severely damage customer satisfaction and brand reputation. Ultimately, prioritizing the reduction of both types can lead to improved quality and long-term success.

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