Analysis of the economic impact of non-conforming products on the profitability of a cement company

Abstract

The presence of non-conforming products in the construction materials industry represents both an economic and quality challenge that directly affects business profitability. Proper management and accounting registration of these products make it possible to identify hidden losses and strengthen operational efficiency. The general objective was to analyze the economic impact generated by non-conforming products at the precast plant of Unión Cementera Nacional UCEM S.A., located in the city of Riobamba, during the 2018–2020 period. The research followed a quantitative, descriptive, and correlational approach, based on financial and operational data collected directly from UCEM S.A.’s precast plant. A non-experimental, longitudinal, and retrospective design was applied, analyzing the 2018–2020 period. A random probability sampling method was used on a population of 21 products, resulting in a sample of 16 units. Among the findings, it was observed that between 2018 and 2020, non-conforming products revealed failures in meeting technical specifications due to deficiencies in quality control. Their treatment was limited, lacking a structured system for root cause analysis or continuous improvement, which led to hidden costs and repeated errors. The inclusion of these costs in the financial analysis showed a reduction of up to 3% in gross profitability and 2% in annual operating profitability, affecting the company’s economic sustainability. In conclusion, it was determined that non-conforming products negatively impact the company’s profitability by increasing real costs and reducing profits. The lack of adequate technical management further aggravates their economic effect.