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internal failure cost

internal failure cost

5.9
Costs a company pays when it finds and fixes or throws away defective products before they reach customers
  • noun
  • Specialized
translation icon : coste por fallos internos
  • The company reduced its internal failure costs by improving its inspection processes.

Examples

  • Identifying packaging errors in-house helped minimize overall internal failure costs.

  • Repairing defective units before shipping contributes to internal failure cost.

  • The internal failure cost can significantly impact profit margins.

  • Reducing internal failure costs is essential for our financial health.

  • The factory implemented new quality controls to reduce internal failure costs associated with defective products.

  • By catching defects early in production, the team was able to lower the overall internal failure costs for the project.

  • Investing in better training for employees can lead to a decrease in internal failure costs due to fewer errors.

Antonyms

external failure cost
  • Specialized
6.5

Money a company loses when faulty products reach customers, for example from returns or repairs

How Costly

external failure cost
  • Specialized
6.5
failure cost
  • Specialized
5.7
internal failure cost
  • Specialized
5.9

Surface Forms

Morphology

internal + failure + cost

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.