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DHart said:
One good QC person at Colt (with management directive to catch substandard guns) could put that to an instant END. Why Colt doesn't do this is beyond me.
Well, it probably really take a team of QC inspectors to inspect every gun that leaves.

But anyway I suspect that it is something along the lines of up-front cost for the manufacturing arm that is to blame. If you have a team whose entire job is to inspect and reject substandard work you must also pay these people along with retirement/medical plans. Yet at the same time they provide no increase in direct output per dollar spent. So they look like a drag on the bottom line.

Common sense says that saving money on shipping three times, extra warranty dept work, clerical dept work, and I'm sure I'm missing a lot of other categories, would be less expensive overall. I suspect that it would but those other expenses are charged to other departments so it makes each gun produced look better on paper when you look at just the cost to produce versus the dept that did produce it. Basically the manufactriung dept is pushing some of its overhead off on another department to improve their bottom line.

This sort of thing really comes down to accounting games to keep somebody in mangement happy. Unfortunately it fails to take into account the bad taste left in prospective buyer mouths but since that's a "hidden" expense you'll never get a manager to include that in their plans.
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