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50 The PCB Magazine • April 2015 lated to prevention, appraisal (inspection), re- work, and scrap (customer returns are factored into either rework or scrap). Figure 2 shows the relative distribution of expenditures in a typical company, with the largest portion of expense resulting from bad quality (scrap). The traditional business will spend about three times the amount of money on appraisal (inspection) than they do on prevention. When you combine appraisal costs with the exponen- tial amount of dollars that are being wasted on rework and scrap, it is clear that this is not an effective model. Now, contrast that with the lean best practice business model. By spending a majority of their expenditures on prevention, appraisal costs can be greatly reduced and re- BEST PRACTICES 101, PART 6 continues poInt oF vIew Figure 1: results of best practices project done by Calumet electronics Corporation.

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