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The Costs of Waste<br />
• Waste has a greater cost than the direct expense<br />
to the bottom line<br />
• Customer impact<br />
• Repurchase intention<br />
• Reputation<br />
• Resource waste<br />
• Chasing ghosts<br />
• Future design<br />
• Specific Example:<br />
• Sebring with 2.4L engine<br />
• Warranty claim for replacing engine, approx $7000 coded<br />
as engine block<br />
• Actual cause of engine failure, radiator leaked<br />
• Claim coding errors can create waste too!<br />
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