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.
