The True Cost of Quality and
Hidden Costs of Rework

At Pack Logix, our commitment to quality isn’t just a value statement; it’s a strategic investment that underpins our entire operation. To us, maintaining the highest quality standards is a non-negotiable, requiring a proactive approach before your product even hits the production line.

Our proactive approach is rare in our industry. Many lubricant and chemical contract packagers focus solely on end-of-the-line post-production issues, which impact your product’s quality and cost. Read on to learn more about the true cost of quality and the hidden costs of rework.

What is the True Cost of Quality?

The cost of quality (COQ) encompasses all expenses incurred to ensure your product meets stringent standards. Our proactive approach invests in excellence at the onset to prevent defects and maintain our high-quality standards. This approach minimizes the risk of shipping faulty products and also ensures that any defects are identified and corrected before they reach our customers. By upholding this high standard, we consistently deliver superior-quality products.
Investing $1 upfront saves $3 in potential rework and replacements.

However, the true cost of quality goes beyond just monetary value. It reflects our commitment to excellence and our dedication to our customers. Ensuring quality from the outset means fewer disruptions, less waste, and more satisfied customers. Our comprehensive quality control processes include frequent checks every five minutes, covering seal quality, bottle cleanliness, date code stamps, label application, and weight. Additionally, a dedicated quality inspector performs random checks throughout the day to further ensure consistency.

The Hidden Costs of Rework

While rework is rare at Pack Logic, there are times when rework becomes necessary. Each instance of rework introduces significant costs and complexities, highlighting the importance of getting it right the first time. Here’s a breakdown of the hidden costs associated with rework:
When a pallet of products requires rework, it must be segregated from other products. This process involves wrapping it in red wrap to indicate it needs special handling and storage. The segregation not only takes time but also requires additional space and resources, adding to the overall cost.
Rework necessitates manual inspection, which is both time-consuming and prone to human error. While a machine might fill 60 bottles per minute at a minimal cost, manual inspection is significantly slower, often only achieving 1-2 bottles per minute. This drastic reduction in efficiency leads to increased labor costs. Moreover, manual inspection introduces the risk of human error, further compromising quality and potentially leading to more rework.
Manual inspection is a labor-intensive process that significantly raises costs. Workers must inspect each bottle manually, looking for issues such as improper seals, incorrect labels, or other defects. This process is slow and costly, as it involves paying employees for the additional time required to perform these inspections. For instance, the cost of a machine filling 60 bottles per minute is relatively low, but when manual labor is involved, the cost per bottle skyrockets due to the slower pace and higher wages.
Manual inspection, while necessary in rework situations, introduces a higher risk of human error. Inspectors must identify and correct defects the machines may have missed, but even the most diligent workers can overlook issues. This increased risk of error means that some defective products might still make it through the inspection process, leading to potential customer dissatisfaction and additional costs for handling returns and replacements.

Overall Cost Impact

The costs compound each time rework is necessary. Segregation, manual inspection, increased labor, and risk of human error all contribute to a significant overall cost impact. The expenses associated with rework can quickly add up, making it clear why investing in quality from the outset is crucial.

Getting It Right the First Time

At Pack Logix, we understand that the best way to manage the cost of quality is to prevent defects before they occur. This proactive approach is more cost-effective and efficient than dealing with the hidden costs of rework. By investing in rigorous quality control measures and maintaining high standards throughout the production process, we minimize the need for rework and ensure that our products meet or exceed customer expectations.

At Pack Logix, we are committed to getting it right the first time, every time, to avoid the hidden costs of rework and ensure the highest level of quality for our clients.

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