Quality Charges for Repacking Re-Inspected Product

Fault has been catched on outgoing quality control. Due to the serial production naturally some of the packed products might have same problem. Therefore we are opening the packages of products to control and repacking.

Id like to learn how could you define the cost of repacking. I mean quality charges. For example you give a 10 euro for each product or 15 euro/hour.

If you share your experiences I will be much appreciated.

That cost becomes part of the re-inspections costs due to containment of the error found to assure the lot is correct and or purged of nonconformances. Reinspection cost(labor & overhead)+ packaging+ frieght, etc.

ralphsulser said:

That cost becomes part of the re-inspections costs due to containment of the error found to assure the lot is correct and or purged of nonconformances. Reinspection cost(labor & overhead)+ packaging+ frieght, etc.

Click to expand...

thank you very much ralphsulser.

But I'd like to go into detail.

for example one worker cost is 6 euro/hour. 10 workers are working for re-inspection for 1 hour. logically it should be 6*10=60 euro. Assume that overhead costs is 1 euro/hour totaly it cost 6*10+1*10= 70 euro. This is the real cost but also we have hidden cost that can't be counted like Quality guys should be dealing with the issue and makes paperworks;request corrective action from the supplier and this issue should be also tracked by them.

these hidden cost and deterrent penalty should be added to the cost. How could you manage this. İf we get the above example it could be (6+1)*2=14 euro per hour ?

Addition to that ı'd like to learn what is the supplier penalty charge at your facilities ?

Thank you very much in advance

The only way you'll be able to figure out how much your quality issue is costing you internally will be to track how much time your personnel spend dealing with the issue. There's not going to be a standard number, some problems require a ton of your time to solve, some are just 'Remove the blue parts from the red bins'.