Cost of Poor Quality
- Adjustments made to revenue on a prior period
- Adjustments made manually through offline systems
- Daily adjustments in offline systems
- Many unused service items
- How many people report service contract issues?
- How much effort does it require to handle the issue?
- How many people have to be involved?
In the worst case scenario…
- You could have an entirely different process path
- 80% of this effort would be waste
- 80% of these transactions introduce errors on audit reports
- Your original transactions have defects that would be non-conformance defects
- Your 80% duplicates become the evidence of poor accounting practices
- Your accuracy on your financial statements becomes 20% accurate
- Your risk becomes 80%
- Your operational cost become twice the norm making you less profitable.