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Apr 12 | Posted By

Risk Management Techniques To Manage Defective Products

Defective products can occur in a wide range of industries. When a defective product is introduced on the market, it can have a significant impact on the reputation and bottomline of a business.

Managing Risks To Prevent Defective Products

Product recalls allow companies to protect consumers and their own organizations while minimizing the costs related to liability or litigation. Defective products do irreversible damage to your brand if you don’t have a system in place to manage these and other risks.

The Cost of Defective Products

The number of defective products that have been recalled is increasing. Recalls have been applied to products in many areas including the food, automobile, and toy industries among many others.

The reason that product recalls are increasing is difficult to identify. Many argue that quality management systems need to be improved within certain companies or their industries as a whole.

Another factor may involve the initiative that today’s companies are taking in warning the general public about a defective product before it results in more serious issues. This protects them from any potential loss of credibility within their industry.

Recalling a defective product protects consumers and can save businesses a significant amount of financial loss.

Know When to Recall a Defective Product

Businesses must consider many factors when recalling a defective product. The safety of consumers is the most important consideration to make, as defective products may cause physical harm.

Sanctions from regulatory agencies can impact your business. Hefty fines are often levied against companies that did not prevent a defective product from entering the marketplace or failed to comply with industry regulations and standards.

Determine Potential Costs

Businesses must also consider the financial cost of recalling a product. However, they should remember that this cost can pale in comparison to the costs associated with keeping a defective product on the market.

Defective products increase the likelihood of lengthy and costly legal proceedings. In some cases, criminal charges can be brought against a company who willingly released a defective product.

Companies can also be implicated in issues that affect third parties. These include other manufacturers who use your product in their own processes.

Using Feedback

Market feedback consists of customer complaints and issues reported by third parties. The feedback you receive must be considered and used to improve the quality of your products and services.

Your quality management system can provide data that helps you track any issues so that they’re addressed as soon as possible.

Today’s quality management systems include tools that allow you to quantify the risks within your processes. This includes issues related to maintenance and ongoing monitoring as well as safety standards.

This helps you manage defective products and prevent the potential consequences. Over time, you’ll ensure a higher level of quality that satisfies your customers and protects your brand’s position within your industry.