12/08/2026
Three days in and I have mostly written about what defects cost. Here is the other side.
The research group behind his paper was not only academics. It included the seven companies whose projects were measured. People with their own skin in the game.
Their estimate: about half the defect cost could be eliminated by simple means. That is a group with the firms who ran the projects sitting in it, not researchers working alone.
You don't have to chase all of it either. Josephson sorted every defect by cost, most expensive first, then added them up as he went.
By the time he reached the worst 1%, he had accounted for 25% of the total cost. By 5%, more than half. By 20%, 79% of the total defect cost.
Twenty nine defects out of 2,879 carried a quarter of the total defect cost.
Design is where it's most reachable. 91% of design defects were judged findable earlier by the people involved.
Put a number on it. Defect costs ran at 4.4% of production cost. The Swedish industry profit margin at that time was about 2%.
If you could halve the defect cost then you have found more than your entire margin again. That is my arithmetic rather than his, to put it into context. Even small fractions change what a project returns.
That's the prize, we don't need perfection. If even a small number of costly issues surface early enough in design, the effect can be dramatic.
I will be reviewing and writing about many more studies such as this to build a picture over time. I am very interested to see just how much improvement has taken place over the decades.
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What do you think? Does the opportunity still exist today? I would love to hear your personal opinion in the comments.