internal failure cost
- noun
- Specialized
- The company reduced its internal failure costs by improving its inspection processes.
Examples
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Identifying packaging errors in-house helped minimize overall internal failure costs.
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Repairing defective units before shipping contributes to internal failure cost.
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The internal failure cost can significantly impact profit margins.
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Reducing internal failure costs is essential for our financial health.
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The factory implemented new quality controls to reduce internal failure costs associated with defective products.
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By catching defects early in production, the team was able to lower the overall internal failure costs for the project.
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Investing in better training for employees can lead to a decrease in internal failure costs due to fewer errors.
Antonyms
- Specialized
Money a company loses when faulty products reach customers, for example from returns or repairs
How Costly
- Specialized
- Specialized
- Specialized
Surface Forms
Morphology
The meaning ('costs associated with failures that occur inside an organization') is directly composed from 'internal' (inside the organization) + 'failure' (a breakdown/defect) + 'cost' (monetary amount). Although the term is somewhat technical, its sense is literal and follows normal noun-compounding patterns, so a B1 learner who knows the three words should be able to infer the overall meaning.
Etymology
Internal failure cost comes from a simple factory image: defective items that 'fail' inspection stay internal, inside the company, and cause a cost when they are repaired or thrown away. So, the phrase means the money a company spends to find and fix defects before products reach customers.