What is prevention costs in SAP QM - Quality Management?

SAP Term: prevention costs

• Component: QM

• Component Name: Quality Management

• Description: The quality-related costs that are incurred as a result of preventive and corrective tasks in the quality control process.

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• Key Concepts: 
  Prevention costs are costs associated with preventing defects in a product or service. In SAP Quality Management (QM), prevention costs are used to calculate the total cost of quality (COQ) for a product or service. The COQ is the sum of all costs associated with quality assurance, including prevention costs, appraisal costs, and failure costs. 
  
  How to use it: 
  In SAP QM, prevention costs are calculated by taking into account the cost of preventive measures such as training, process improvements, and quality control activities. The cost of these preventive measures is then added to the total cost of quality for a product or service. 
  
  Tips & Tricks: 
  It is important to remember that prevention costs are only one part of the total cost of quality. Appraisal costs and failure costs should also be taken into account when calculating the total cost of quality for a product or service. 
  
  Related Information: 
  Total Cost of Quality (COQ) is a measure used to assess the overall cost of quality assurance activities for a product or service. It is calculated by adding together the prevention costs, appraisal costs, and failure costs associated with a product or service.