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Cost Analysis of Unsafe Products

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3 Questions

What is the main concept of the section?

Any improvement in safety as it relates to an engineered product is often accompanied by an increase in the cost of that product.

What are Secondary Costs in relation to unsafe products?

Warranty costs, loss of goodwill, loss of customers, litigation costs, downtime costs in manufacturing, etc

According to Figure 5-1, which product has high Primary costs?

A highly safe (low risk) product

Study Notes

Test your understanding of the main concepts related to secondary costs of unsafe products and identifying products with high primary costs based on a provided figure.

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