What defines prevention costs in quality management?

Prevention costs are defined as the expenses associated with activities aimed at preventing defects and ensuring a high level of quality in products or services before they are produced or delivered. This proactive approach to quality management focuses on creating robust systems, processes, and training that minimize the chance of defects occurring in the first place. Expenses in this category might include costs for quality planning, training employees, process control, and quality improvement initiatives.

By investing in prevention activities, organizations can significantly reduce the likelihood of producing poor quality goods or services, which ultimately saves costs related to inspections, corrections, and potential customer dissatisfaction. This makes prevention costs a fundamental aspect of effective quality management, as they directly contribute to the reliability and quality of the output from the start.