What should be the focus of activities aiming to reduce external failure costs?

Ensuring conformance to standards before delivery is a critical focus when aiming to reduce external failure costs. External failure costs are the expenses that arise when a product or service fails to meet quality standards after it has been delivered to the customer, leading to issues such as returns, warranty claims, and loss of customer trust. By emphasizing conformance to standards prior to delivery, organizations can proactively identify and address potential quality issues, thereby preventing defects from reaching the customer.

Achieving high conformance means implementing quality assurance practices, such as rigorous testing and quality control measures, which ultimately lead to fewer external failures. This not only helps in reducing costs associated with returns and repairs but also enhances customer satisfaction and loyalty, as customers receive products that meet or exceed their expectations.