prevention costs

**Prevention costs** is the **proactive quality investments made to stop defects before they are created** - these costs are intentional and usually produce the highest long-term return in manufacturing quality systems. **What Is Prevention costs?** - **Definition**: Spending on activities that reduce defect probability at design, process, and training stages. - **Typical Items**: DFM reviews, PFMEA, process capability programs, training, and poka-yoke implementation. - **Timing**: Occurred upstream before production fallout, warranty claims, or customer impact. - **Accounting Role**: Classified as good quality cost that should displace failure-related cost over time. **Why Prevention costs Matters** - **Highest ROI**: Fixing root causes early is significantly cheaper than post-failure correction. - **Yield Stability**: Prevention reduces variability and improves first-pass performance. - **Cycle-Time Benefit**: Less rework and firefighting means smoother production flow. - **Customer Protection**: Early controls reduce escape risk and field reliability incidents. - **Scalability**: Strong prevention systems support faster and safer volume ramp. **How It Is Used in Practice** - **Risk-Based Allocation**: Prioritize prevention spend on failure modes with highest severity and frequency. - **Capability Build**: Invest in training, standards, and control infrastructure before major launches. - **ROI Tracking**: Measure downstream defect and COPQ reduction attributable to prevention actions. Prevention costs are **the most productive quality dollars an organization can spend** - each unit of prevention investment reduces multiple units of downstream failure loss.