external failure cost
- noun
- Specialized
:
costo de fallo externo
- The company tracked its external failure costs to measure the impact of defective products on customer satisfaction.
Examples
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High external failure costs can damage a company's reputation and reduce its profits.
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Reducing external failure costs is a key goal in effective quality management systems.
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The external failure cost is significant.
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The external failure costs are rising!
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The company tracked its external failure costs to measure the impact of defective products on customer satisfaction.
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High external failure costs can damage a company's reputation and reduce its profits.
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Reducing external failure costs is a key goal in effective quality management systems.
How Visible
- Specialized
- Specialized
Surface Forms
Morphology
The phrase is largely compositional: a learner who knows 'external', 'failure', and 'cost' can infer it refers to costs associated with failures that occur externally (e.g., outside the company). However, the precise business/quality-management sense — costs specifically incurred when defective products reach customers (warranty claims, returns) — is technical and not fully predictable from the words alone, so domain knowledge is needed.
Etymology
External failure cost gives a clear picture: imagine a faulty product leaving the factory and a bill following it out the door. Here external means outside the company, failure means the product did not work, and cost is the money lost, so the phrase means 'the money a company pays when a defective product reaches a customer'.
