Factory Production Loss: 5-10% Yield Defects Cost SGD 50K-500K/Year
Electronics manufacturer SGD 10M/year production. Defect rate: 7% (industry avg 5-8%). Defective units: 7,000. Cost per unit: SGD 50-200 material + labor. Total loss: SGD 350K-1.4M. Root cause: Line 3 (overnight shift) has 10% defect rate vs Line 1 (day shift) 4%. Fix: shift supervisor training = recover SGD 3K/month immediately.
6 min read