"Quality cost money. You can QC/QA a predetermined percentage based on a HALT - HASS testing or with substantial real time data, but you know at least one will get through to the customer. If this is part of your strategic road map, then you fix it in customer service. "
Not necessarily so. If the company process is consistant, quality will add very little money in the final cost of product. HALT will help you design a product better. HASS will tell you what manufacturing process will need to be improved. Those add very little cost to the toatl cost of the product.
"You can choose to do 100% QC/QA and lower your customer support needs, but it will raise your production cost for sure. Yes, you can use AOI and X-ray with high upfront cost but you still need some manual inspection, where the level of expertise is associated with higher salaries . It all depends on what the product is, are lives at stake and your customer base."
You don't do 100% QA/QC because that is bandage and something is wrong with your process or design. I have plenty example of these.
"Case in point, consumer goods cost less than military due to higher acceptance standards like Mil-Spec, ISO, etc..."
That is not true. A lot of comsumer products utilize Mil specs, ISO, SPC, and still are much much cheaper than military. It is because consumer product use a lot of mass production (high volume) techniques such as automation, SMT (no thru hole), repetitive assembly technique, etc. The high cost of military product are due to bureaucracy, low volume, manual labor, high labor cost, etc.