Prevention Costs Notes: Definitions & Explanations PDF | Download eBooks
Study Prevention Costs lecture notes PDF with total quality management definitions and explanation to study What is Prevention Costs?. Study prevention costs explanation with TQM terms to review total quality management course for online MBA programs.
Prevention Costs Definitions:
Prevention costs are the costs associated with preventing defects and imperfections from occurring.
Managing Quality: Integrating the Supply Chain by S. Thomas Foster
Prevention costs are those costs associated with efforts in design and manufacturing that are directed toward the prevention of nonconformance.
Introduction to Statistical Quality Control by Douglas C. Montgomery
Prevention Costs Notes:
The traditional way of quality control was to check the quality at the end of the production process and look for defective products. However, a better way is to prevent the defects from happening in the first place. The cost associated with this prevention is called preventive cost. The methods of prevention include control charts (statistical process control), quality training of workers, process improvements, quality engineering etc. For example, an organization conducts training sessions for the production personnel so that they know the right way of manufacturing parts without defects. The investment made for the training sessions come under the prevention costs.
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