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For example, let's say an IT company called WeTech is making a new helping robot that has two categories for quality called prevention cost and
For example, let's say an IT company called WeTech is making a new helping robot that has two categories for quality called prevention cost and failure cost. The prevention cost is used to prevent defects in the production cost and can include the following: employee training, QC inspections, and maintenance of equipment. The total cost of prevention is $100,000. On the other hand, the failure cost and these are defects not caught before the product reaches the customer and these could include returns or warranties. The total cost of failure is $200,000. Therefore the total cost of quality is $300,000. To find an optimal quality, WeTech would need to increase their prevention cost to help minimize the defects getting into consumer hands
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