Prevention Costs

These costs are incurred to keep future and valuation costs to a minimum. This includes:

Quality Planning: This includes the broad set of activities that collectively constitute the quality plan, audit plan, reliability plan, data system, and numerical specific plans. It also includes the preparation of the manuals and procedures necessary to communicate all these related plans.

New Product Review: Includes the evaluation of the new design, preparation of test and experiment programs and other quality activities related to the launch of new designs and preparation of new proposals.

Training: The costs of preparing training programs to achieve and improve quality performance include the cost of conducting formal training programs.

Process Control: It includes the part of process control that is done to achieve suitability for use as opposed to achieving efficiency, safety, etc.

Quality Data Collection and Analysis: This is the work of operating quality data systems to obtain continuous data on quality performance. It includes analysis of this data to identify quality problems, sound alarms, etc.

Quality Reporting: Includes the collection and publication of quality information to middle and senior management.

Improvement Projects: Includes studies on structuring and executing programs for transition to new performance levels, i.e. defect prevention programs, motivation programs, etc.

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