The Impact of Viruses on The Rising Costs of Failure in Government-Owned Industrial Companies and Ways to Address Them

This study investigates the impact of virus outbreaks on failure costs in government-owned industrial companies, with a particular focus on external failure costs, which are critical to financial performance and reputation. Virus-related disruptions have hindered production and delivery processes, leading to higher failure costs, increased overall quality expenses, and consequently elevated product prices. The research highlights that the inability to meet customer requirements during such outbreaks not only raises external failure costs but also results in the loss of current and potential customers, threatening market position. The findings underscore the importance of implementing preventive and appraisal measures, adopting flexible operational strategies, and exploring alternative solutions to mitigate the financial and reputational effects of virus outbreaks on industrial companies.