Prevention Costs

Prevention Costs Examples are :

-Quality planning:

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:

Reliability engineering and other quality-related activities associated with the launching of new design.

-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).

-Quality audits:

Evaluating the execution of activities in the overall quality plan.

-Supplier quality evaluation:

Evaluating supplier quality activities prior to supplier selection, auditing the activities during the contract, and associated effort with suppliers.

-Training:

Preparing and conducting quality-related training programs. As in the case of appraisal costs, some of this work may be done by personnel who are not on the payroll of the Quality department. The decisive criterion is again the type of work, not the name of the department performing the work.

Note that prevention costs are costs of special planning, review, and analysis activities for quality.

Prevention costs do not include basic activities such as product design, process design, process maintenance, and customer service.