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The waste is real. It just isn't labeled waste on the P&L.

Rework, defects, escapes, and the hours spent fixing them never appear as a line item — they hide inside payroll and cost of goods. Six inputs put an annual dollar figure on it. Most leaders are off by 5–10x, in the wrong direction.

Claims, invoices, applications, orders, cases — whatever the process handles.
Share of items requiring correction, rework, or resubmission.
Average handling time to detect, correct, and reprocess.
Salary + benefits + overhead. If unsure, salary × 1.4 ÷ 2080.
Cost when a defect reaches the customer: credits, penalties, churn, expedites. Enter 0 if unknown.
Portion caught by the customer instead of internally.
Unlocks the industry benchmark comparison.
Estimated Annual Cost of Poor Quality
$0

See where the money goes.

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