Mataracy
VIP Contributor
When we look at the word prevention cost there must be a problem somewhere in the production of product or goods of the company that has been taken away company resources which we must prevent.
Prevention costs are the cost of action to prevent defects(or reduce the number of defects). They are costs incurred to prevent a quality problem from arising.
Quality problem can arise from a variety of reasons like:
(1) The initial design of the product and method of making it may be poor so that there will be a large number of substandard items produces.
(2) poor raw material used to make the product
(3) The work force may be badly trained and so make a large number of errors in production.
(4) Faulty output may occur when the production machinery is not in good working order.
Knowing all this problem facing by the company;What can a company do to prevent the cost? Company need your help and your contribution will do a lot.
Prevention costs are the cost of action to prevent defects(or reduce the number of defects). They are costs incurred to prevent a quality problem from arising.
Quality problem can arise from a variety of reasons like:
(1) The initial design of the product and method of making it may be poor so that there will be a large number of substandard items produces.
(2) poor raw material used to make the product
(3) The work force may be badly trained and so make a large number of errors in production.
(4) Faulty output may occur when the production machinery is not in good working order.
Knowing all this problem facing by the company;What can a company do to prevent the cost? Company need your help and your contribution will do a lot.