Today’s PM Minute is focused on the second cost of good quality, Prevention Costs.
Prevention costs are spent to prevent, as the name suggests, or avoid defects in the quality of a product or service. A defect is a result that does not meet requirements.
We’ve talked many times about the importance of accurately capturing requirements in a project. The effort spent on requirements gathering is actually a prevention cost as it helps to ensure that the product or service created by the project will meet customer needs.
Other examples of prevention costs are: training, quality planning including specifications for inputs, and quality assurance.
For more information on Quality Assurance, check out Colocation #37