PM Minute: Prevention Costs

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