Posted inProfessional Ethics & Human Values
Secondary Costs of Products
Cost of products is High, if designed unsafely Returns and Warranty Expenses Loss of Customer Goodwill Cost of litigation Loss of Customers due to injuries in using it Cost of rework, lost time in attending to design problems Manufacturer’s understanding of the risk in a product is necessary: To help reduce secondary costs To know the possible risk for purposes of pricing, disclaimers, legal terms and conditions, etc. To know the cost of reducing the risks To take a decision before finalizing the design. Buyer’s understanding of the risk in a product is necessary: To judge whether he/she wants to take the risks To judge whether the ‘risk vs. costs’ justifies taking the risk.