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You must first recognize there is a problem and then figure out why it occurred so you can find a resolution. Six Sigma allows you to do just that. You can analyze your various costs as well as the performance of different factors in order to find out how and where improvements should be made. It is important for companies to pay close attention to how well their products are manufactured since that is what keeps customers coming back again and again.

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Cost of poor quality is comprised of costs that have been generated as a result of defective and inconsistent manufacturing processes. Six Sigma will directly assign a dollar value, which then makes it measurable. This dollar value originates from all places where the product as a whole or any part of it is being manufactured. This includes many different aspects that are discussed below.

A portion of the cost of poor quality can originate from suppliers. This is where the products are purchased. The suppliers may have defective products and if this isn't caught, companies who purchase them will then resell them to customers. This can result in unhappy customers who either want their money back or a replacement product.