So as we are earlier said that the Prevention Cost is all those cost which are spent to avoid 2
the nonconformists, to avoid 3
the poor quality. 4
This is something which you invest beforehand as a proactive measure to avoid the quality problems. 5
And the costs related to that would be considered as prevention cost. 6
Prevention costs could include quality planning. 7
So whatever planning you are doing to make sure that you make the right thing first time that will be 8
the cost of prevention. 9
Whatever money you are spending in education and training to avoid any problems that's the prevention cost. 10
Any designed review which you do beforehand to avoid the quality problem happening in 11
the first place will be considered as prevention cost. 12
There could be a number of prevention costs. 13
So as I'm going through these four costs of quality- Prevention, Appraisal, Internal failure and External failure. 14
I would suggest that you take a piece of paper and pen and write down in your work area. What type of 15
costs you are incurring 16
as prevention cost. 17
What cost you are incurring an appraisal, 18
Internal failure or External failure. 19
Look at that from your own product or service point of view. Here I'm just giving you a few high level 20
examples of each of these costs. 21
So we talked about the prevention cost here. 22
Let's move onto the next slide and look at the appraisal cost of quality.