Manufacturing CFO
First Pass Yield Shows 94.2%
Finance Records 96.8%
That 2.6% gap isn't a rounding error. It's $2.3M annually in hidden scrap, rework hours, and quality costs that never hit your P&L correctly.
The $2.3M Gap Your ERP Doesn't Show
Why finance sees one number and operations sees another
What Finance Reports
Looks Great!
Based on COGS variance reporting
What Operations Knows
Below Target (95%)
Based on quality system actuals
96.8%
Finance FPY
-
94.2%
Actual FPY
=
2.6%
Hidden Gap
=
$2.3M
Annual Cost
Where the Money Goes
Cost by category - Finance view vs. actual
| Category | Finance View | Actual Cost | Hidden Gap | % Under-reported |
|---|---|---|---|---|
| First Article Rejects | $142K | $387K | $245K | +172% |
| In-Process Rework | $218K | $623K | $405K | +186% |
| Final Inspection Scrap | $89K | $312K | $223K | +250% |
| Customer Returns | $156K | $478K | $322K | +206% |
| Warranty Claims | $312K | $524K | $212K | +68% |
| Hidden Labor (Rework) | $0 | $893K | $893K | ∞ |
| TOTAL | $917K | $3.22M | $2.30M | +251% |
Source: Manufacturing Industry Quality Cost Analysis (ASQ Quality Costs Benchmark 2025)
Why Finance Doesn't See It
The structural gap between quality systems and financial reporting
Rework Labor Buried
Rework hours coded to production labor, not quality cost. $893K invisible.
Scrap Timing Mismatch
Quality catches defects before finance posts COGS. Months of lag.
Overhead Absorption
Scrap costs absorbed into overhead variance, not traceable to root cause.
Manufacturing KPIs That Drive Quality Costs
SlideStrike tracks these automatically from your quality systems
OEETarget: 85%
72.4%
Overall Equipment Effectiveness
FPYTarget: 98%
94.2%
First Pass Yield
Defect RateTarget: <1,000
4,200
Parts per Million
MTBFTarget: 1,200
847 hrs
Mean Time Between Failures
Scrap RateTarget: <1%
3.8%
% of Production
Rework HoursTarget: <50
312
Weekly Average
TRANSFORM YOUR OPERATIONS
Make Quality Costs Visible to Finance
SlideStrike bridges your quality management system and ERP to reveal the true cost of quality in board-ready presentations.
Real-time quality cost aggregation from MES/QMS
Automatic reconciliation with ERP scrap postings
Hidden labor cost identification and attribution
Board-ready quality cost trending and variance analysis