What is the effect of defects in a process?

Defects in a process have a significant negative impact, primarily leading to added costs. When defects occur, organizations often face rework, waste, and increased inspection costs to ensure quality. These additional expenditures can erode profit margins as more resources are allocated to address the problems created by defects. Furthermore, dealing with defects may also involve costs related to customer dissatisfaction, complaints, or returns, which can detract from overall business efficiency and profitability.

The other outcomes, such as lower costs or higher profits, are typically associated with a well-functioning process with minimal defects. An increase in liability is not a direct effect of defects but rather a potential consequence of quality issues that could lead to legal actions or penalties. Thus, the central concern with defects is the extra financial burden they impose on an organization, reinforcing that added costs is indeed the correct answer.