PM Minute: Internal Failure Costs

Did you try to save money by not performing QA on your project or rushing through the requirements phase?

Odds are, you’ll have equivalent – or probably greater – expenses tied to quality. Only, instead of spending for good quality, you’ll be paying for poor.

The third in our 4-point Cost of Quality series is part of the cost of poor quality. Specifically, the cost of internal failure.

We’ve all been part of projects where requirements were poorly defined, or scope was uncontrolled and changed significantly. That means we’ve all experienced several of these internal failure costs:

  • Waste – the team did work that wasn’t needed and didn’t add value

  • Scrap – a deliverable that could not be approved or used by the customer

  • Rework – doing it all over again to correct a mistake

Plus, the time spent figuring out what went wrong in each of these cases.

In all projects, you are going to spend time and money on quality. Spend it on good quality!