Not only the loss of material and the product is wasted because it is not worth selling, but nonconforming product requires inspection of extra treatment. This inspection job requires additional funds to pay workers. So the loss is the loss of material due to the unused product, loss of manpower employed for the inspection work, and if there are claims of the customer needs more funds again.
Thus the lean manufacturing here plays a very important role in eliminating all waste that is in production. Starting from the arrangement of 5S, a standard work, train workers to work effectively. and so forth.
inspection to avoid nonconforming product, ideally every section must exist, so that when there are irregularities product can immediately take action, whether in doing repeated or may still be improved. Inspection is done he incoming materials, in process and at the end of the process before it is sent to the customer. If you require additional manpower to do than exposed to claims from customers and it will result in more severe. Claim that require huge funds, products not in demand, decreased customer confidence.