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In: Operations Management

Why is prevention the least expensive form of quality cost?

Why is prevention the least expensive form of quality cost?

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Expert Solution

Before answering why prevention costs are the least expensive form of quality cost, it becomes imperative to understand what is prevention costs?

American Society for Quality defines prevention costs as those costs which organization incurs to avoid or prevent the quality problems. An organization incurs these costs during design, implementation, and also during the maintenance of quality management systems which is always a priority for Total Quality Management. These costs are planned well in advance and are always incurred before the actual implementation of the project.

Following arguments support the motion of why prevention always remains the least expensive form of quality cost:

  1. Prevention costs are planned well in advance and are made to avoid any huge waste or quality defects. It keeps the quality of the products intact and if we compare them with other forms of cost, we will come to know how they are the least expensive among them as they avoid the quality defects altogether.
  2. Prevention costs are the least expensive because they make sure other forms of waste or costs remain bare minimum. Other forms of costs like appraisal costs, internal failure, and external costs remain bare minimum and can be avoided altogether if prevention costs are well planned.
  3. As the saying goes prevention is better than cure, Organisations are taking the quality aspect of the product seriously because they are aware of how so much is at stake. If organizations made the product which remains the waste for him, it will hurt the brand badly because waste is always determined from the customers perspective.
  4. Prevention costs are planned well in advance to avoid any accident, human or technological. If the design poses threat to any stakeholder involved, it will always create a space for huge lawsuits and will doom the organization forever.

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