Prevention Costs

Prevention Costs of Quality Costs

Prevention costs are one of the four elements of cost of quality. When implement and tracking a cost of quality system within a company, management typically focuses on internal and external failure costs. Management studies the costs due to defects and not the cost to prevent the defects. Costs of prevention focuses on the actions taken to prevent the creation of defects. Companies that pursue operation excellence track these costs and purposely alllocate money to this element. These companies spend more on prevention methods than the other quality cost elements. Here are examples of these costs:

Quality planning and Prevention Costs

This includes the broad array of activities which collectively create the overall quality plan and the numerous specialized plans. It includes also the preparation of procedures needed to communicate these plans to all concerned.

New-products review:

This inlcudes design review, reliability engineering, risk assessment, FMEA, Design of Experiements and other quality-related activities associated with the launching of new design.

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Process planning:

Process capability studies, inspection planning, and other activities associated with the manufacturing and service processes.

Process control:

In-process inspection and test to determine the status of the process (rather than for product acceptance). This includes SPC, Anova Studies and guardbanding.

Quality audits:

Evaluating the execution of activities in the overall quality plan. Read more on Quality Audits here.

Supplier quality evaluation:

Evaluating supplier quality activities prior to supplier selection, and auditing the activities during the contract


Preparing and conducting quality-related training programs. Conducting training on company procedures, specification and inspection activities.

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More Info

  • Cost of Quality

    Learn the 4 categories of Cost of Quality. Start tracking your quality assurance actions with monetary terms.

  • Internal Failure Costs

    internal failure costs are costs of deficiencies discovered before delivery which are associated with the failure

  • External Failure Costs

    External Failure Costs associated with deficiencies that are found after the shipment of the product.

  • Appraisal Costs

    Appraisal Costs are the costs incurred to determine the degree of conformance to quality

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Robert Broughton
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