May 2016 Spray 29 600 hours are expended during a six month investigation. The loss of sales for the failed product plus the cost of scrapped goods and consulting costs should also be included in the cost calculation. In addition, an investigation also diverts resources from other projects, causing delays in commercialization of these products. Therefore, the lost sales from delayed new product introductions—caused by diverting resources—should also be added to the investigation costs. Consequently, the example of $90,000 is most likely much less than the actual cost. Product recalls and litigation have even higher costs than an investigation. These situations also have a corresponding loss-of-sales-cost and an incalculable cost from loss of customer and consumer confidence in the failed product. Therefore, the total cost for a spray package failure is the sum of: • The personnel costs for the internal investigation • Cost for scrapped goods • Lost sales from the failed product • Lost sales from delayed new product introductions • Consulting costs • Recalls if/when they occur • Litigation if/when it occurs The cost of this example failure investigation is significantly larger than corrosion testing, which is insignificant when compared to recall costs and litigation costs. In brief… Investigations, consulting on spray package failures and expert witness consulting typically increase when the amount of corrosion testing decreases. Investigations, recalls and litigation all cost significantly more than corrosion testing. Thus, skipping corrosion testing or abbreviated corrosion testing is not good financial management. Corrosion testing lowers risk, reduces project delays caused by diverting resources to investigate failures and avoids costly investigations, recalls and litigation. Thus, conducting corrosion tests to completion makes for good financial management. We would be happy to teach our Elements of Spray Package (Aerosol Container) Corrosion short course at your R&D facility. Want a specific topic discussed in an issue of Corrosion Corner? Please send your suggestions/questions/ comments to rustdr@pairodocspro.com or visit www. pairodocspro.com. Back articles of Corrosion Corner are available from Spray. Thanks for your interest and I’ll see you in June. Spray GREAT SHAPES. GREAT LOOKS. READY FOR SUMMER. The most stylish way to get your sun care products into the hands of customers is with an aluminum aerosol container from CCL Container. Whether you’re a national brand, store brand or specialty brand, CCL is ready with a complete range of services and solutions, including: • Eye-Popping Graphics • Innovative Full-Contour Shaping • 100% Aluminum Recyclability • Four Convenient Locations • Largest Capacity Available CCL Container One Llodio Drive Hermitage, PA 16148 cclcontainer.com Call 724-981-4420 ext 372 Email: rryckman@cclind.com OR
Spray May 2016
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