A product defect is any characteristic of a
product which hinders its
usability
Usability can be described as the capacity of a system to provide a condition for its users to perform the tasks safely, effectively, and efficiently while enjoying the experience. In software engineering, usability is the degree to which a softw ...
for the purpose for which it was
designed and
manufactured.
Product defects arise most prominently in legal contexts regarding
product safety, where the term is applied to "anything that renders the product not reasonably safe".
The field of law that addresses injuries caused by defective products is called ''
product liability''.
A wide range of circumstances can render a product defective. The product may have a design defect or design flaw, resulting from the product having been poorly designed or
tested, so that the design itself yields a product that can not perform its desired function. Even if the design is correct, the product may have a manufacturing defect if it was incorrectly manufactured, for example if the wrong materials are used. A product may also be considered legally defective if it lacks appropriate
instructions for its use, or appropriate
warnings of dangers accompanying normal use or misuse of the product.
Depending on the given jurisdiction, the failure of a consumer to read the available warnings may negate causation for purposes of a defective or inadequate warning claim in a product liability suit.
A product that is defective in some way that does not render it dangerous might still be sold, with a
discounted price reflecting the defect. For example, where a clothing manufacturer's
inspection discovers that a line of shirts have been made with slightly uneven sleeves, the manufacturer may choose to sell these shirts at a discount, often through an
outlet store and with the
label
A label (as distinct from signage) is a piece of paper, plastic film, cloth, metal, or other material affixed to a container or product. Labels are most often affixed to packaging and containers using an adhesive, or sewing when affix ...
cut off to indicate that the quality is not intended to reflect on the brand. For some products,
rework is appropriate.
Product quality risk in supply chain
Product quality risk in supply chain focuses on the quality problems in the supply chain context rather in the manufacturing quality context. Tse and Tan (2009) identified the concept of "Product Quality Risk in Supply Chain" (PQR) as:
In practice
Product quality risk is an inherent part of the supply chain risks, with a tendency to comprise some or all of the risk elements, such as
operational risk
Operational risk is the risk of losses caused by flawed or failed processes, policies, systems or events that disrupt business operations. Employee errors, criminal activity such as fraud, and physical events are among the factors that can tri ...
, disruption risk and reputational risk. For example, when lead was found in
Mattel
Mattel, Inc. ( ) is an American multinational corporation, multinational toy manufacturing and entertainment company headquartered in El Segundo, California. Founded in Los Angeles by Harold Matson and the husband-and-wife duo of Ruth Handler, ...
's toys, it tarnished the company's reputation, and disrupted the supply of its products in the market.
In the literature, the concept of product quality risk has not been fully investigated. Although Zsidisin stated that quality risk includes the risk of producing unsafe products that can harm the consumer, even when these defects are caused by another firm or inherited from a sub-contractor. However, neither PQR nor its
domino effect
A domino effect is the cumulative effect produced when one event sets off a series of similar or related events, a form of chain reaction. The term is an analogy to a falling row of dominoes. It typically refers to a linked sequence of events ...
in the
supply chain
A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...
have been thoroughly studied.
The product quality risk in global supply chain concept, though similar to "product harm crisis" (defined as defective or dangerous products) and "moral hazard problem" (defined as the outcome of
asymmetric information, imperfect observability in supplier's quality), are not about the risk of product quality in a global supply chain context.
In construction
In construction, defects include aspects of the constructed works which are not in accordance with the scope of the project (the work which the
contractor was asked to undertake) or, where the contractor has designed the work, the construction not compliant with any applicable law or with a design for the work offered by the contractor and accepted by the
client or on the client's behalf. They may be "patent defects", observable in practice during or on
completion of the construction process, or "
latent defects", which are not visible or identifiable until a later date.
Under
common law
Common law (also known as judicial precedent, judge-made law, or case law) is the body of law primarily developed through judicial decisions rather than statutes. Although common law may incorporate certain statutes, it is largely based on prece ...
, a defect which results from the contractor's
breach of contract should be put right by the client, who then sues the contractor for the costs of doing so. The
NEC Engineering and Construction contract, a standard form of contract widely used in the construction industry, allows the contractor to rectify a defect at their own expense in place of the common law position, and obliges the client to allow the contractor appropriate access to undertake the rectification work. At the end of an agreed period, a defects certificate may be issued, which is intended either to certify that there are no patent defects, or to state any defects which remain outstanding.
[Designing Buildings Wiki]
Defects certificate
last updated 30 September 2020, accessed 8 May 2023.
See also
*
Product recall
References
{{Authority control
Quality management
Business law
Product liability