Product Rework

Product rework is something that occurs in the production process no matter what is being made. This is basically when a product has a problem or defect and can’t be approved to be sold to customers, effectively making it worthless until it is repaired to the proper standards. If this happens constantly, the loss of profit due to product rework can really hurt a company’s bottom line—however, there are a number of ways to minimize this cost overall.

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First, when problems with a product occurs in the production process, it needs to be identified. Was it a problem with the design? The machine? Operator error? Once that is identified, an assessment can be done on whether it makes financial sense to fix the product or to move on and take the loss. And if it keeps happening, how to identify the problem as early as possible and fix it for the lowest cost, to keep it from costing the company money again in the future.