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:
- 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.
- 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.
- 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.
- 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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