In addition, when a product fails to perform satisfactorily, shipments are held up, inventory is increased, and a severe financial strain can result. Moreover, when quality is poor, it's a good bet that waste and spoilage on the production line are greater than they should be. The details of the system checkpoints, reports and so on will depend on your type of production system. Also keep in mind any extensive quality control needed on raw materials this can be an added expense. In preparing to start or expand a manufacturing business you should determine at what approximate level of sales a new product will pay for itself and begin to bring in a profit.
Profit depends on sales volume, selling price and costs.