Some more estimates of the cost of Poor Data Quality

Larry English writes  in this article:

Quality experts agree that the costs of non-quality are significant. Quality consultant Philip Crosby, author of Quality is Free, identifies the cost of non-quality to manufacturing as 15-20 percent of revenue. Juran pegs the costs of poor quality, including “custom complaints, product liability lawsuits, redoing defective work, products scrapped . . . in most companies they run at about 20 to 40 percent of sales.” A. T. Kearney CEO Fred Steingraber confirms that “We have learned the hard way that the cost of poor quality is extremely high. We have learned that in manufacturing it is 25-30 percent of sales dollars and as much as 40 percent in the worst companies. Moreover, the service industry is not immune, as poor quality can amount to an increase of 40 percent of operating costs.”


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