Prevention costs

The purpose of this subsection is to outhne the basic elements of a pollution-prevention cost-accounting system that incorporates both traditional and less tangible economic variables. The intent is not to present a detailed discussion of economic analysis but to help identify the more important elements that must be considered to properly quantify pollution-prevention options. 

The closer one is to the failure, the more its direct effects are apparent. The cumulative effects of failure are often overlooked in the rush to fix the immediate problem. Too often, the cause of failure is ignored or forgotten because of time constraints or indifference. The failure or corrosion is considered just a cost of doing business. Inevitably, such problems become chronic associated costs, tribulations, and delays become ingrained. Problems persist until cost or concern overwhelm corporate inertia. A temporary solution is no longer acceptable the correct solution is to identify and eliminate the failure. Preventative costs are almost always a small fraction of those associated with neglect. 

Prevention costs - These are eosts we expeet to ineur to get things right first time, for example quality planning and assuranee, design reviews, tools and teehniques, and training. 

Up to 90% of the total quality cost is due to failure, both internal and external, with around 50% being the average (Crosby, 1969 Russell and Taylor, 1995 Smith, 1993). A survey of UK manufacturing companies in 1994 found that failure under the various categories was responsible for 40% of the total cost of quality, followed by appraisal at 25%, and then prevention costs at 18%. This is shown in Figure 1.6. Of the companies surveyed, 17% were unsure where their quality costs originated, but indicated that these costs could be attributable to failure, either internally or externally. 

Maintenance and production records, along with the used lean and rich glycol analyses, can be very helpful to the troubleshooter. A history of filter element, carbon, tower packing, and firetube changeouts can sometimes be very revealing. The frequency of pump repairs and chemical cleaning jobs is also beneficial. With this type of knowledge, the troubleshooter can quickly eliminate and prevent costly problems. 

Segregation simply refers to avoiding the mixing of streams. In many cases, segregating waste streams at the source renders several streams environmentally acceptable and hence reduces the pollution-prevention cost. Furthermore, segregating streams with different compositions avoids unnecessary dilution of streams. This reduces the cost of removing the pollutant from the more concentrated streams. It may also provide composition levels that allow the streams to be recycled directly to process units. 

Prevention costs - cost incurred in preventing failure, such as planning, training, FMEA, FTA, SPC, MSA... 

In well-functioning insurance markets, individuals transfer risks (the prevention costs of which exceed benefits) to insurance companies. Those companies accept the risks because the premiums they collect equal the claims they pay plus other business expenses (Shavell 1987, Chapter 8). 

DEA Demand Reduction, Street Smart Prevention. Costs to Society. Available online. URL http //www.justthinktwice.com/costs/. Downloaded February 27, 2006. 

Cost must be understood in the context of quahty. If quahty means conformance to requirements, then quality costs must be understood in terms of costs of conformance and costs of nonconformance, , as illustrated in Figure 19-1. In industrial terms, costs of conformance are divided into prevention costs and appraisal costs. Costs of nonconformance consist of internal and external failure costs. For a laboratory testing process, calibration is a good example of a cost incurred to prevent problems. Lhcewise, quality control is a cost for appraising performance, a repeat run is an internal failure cost for poor analytical performance, and repeat requests for tests because of poor analytical quality are an external failure cost. 

Prevention costs Appraisal costs Internal failure costs External failure costs... 

When considering the total cost of drugs and their impact on society, it is necessary to consider more than just the money spent on the drugs themselves. The NIDA/NIAAA estimate includes substance abuse treatment and prevention costs as well as other health care costs, costs associated with reduced job productivity or lost earnings, and other costs to society such as crime and social welfare. The study also determined that these costs are borne primarily by governments (46 percent), followed by those who abuse drugs and members of their households (44 percent). 

A quality control system to prevent costly materials mix-ups consists of the following parts 1) effective materials description in procurement database, 2) selection of competent suppliers, 3) receiving inspections performed at a mutually agreed level, and 4) field verification just before the materials are put to use. See Figure 1-2. 

This pocket guide describes effective methods of specifying, procuring, receiving, and verifying critical materials. It describes how materials are tested and identified, and explains the differences between the various production methods for materials. The object is to provide all people in the supply chain with the tools to prevent costly materials mix-ups. 

Prevention costs refer to the management elements that prevent bad data from... 

P. Pedeferri, E. Redaelli, Cathodic protection of steel in concrete and cathodic prevention , COST 521 Workshop, Tampere, 17-20 June 2001. 

The frequency of FSAs may vary across different system developments but as a minimum should always take place before the potential hazards being presented to the system. Some companies also like to conduct an assessment prior to the construction/installation phase to prevent costly rework later in the lifecycle. 

This average cost 0,(f) depends on the set-up cost S, preventive cost 5(, additional corrective cost ft,- and the reliabihty characteristic of the component i like the failure probability function F,(f). 

Prevention costs are those associated with actions to ensure the desired quahty on products and services,... 

Prevention costs quality and maintenance management, health safety, environmental responsibilities. 

Prevention costs are associated with planned activities whose purpose is to ensure the collection of data of acceptable quality and to prevent the generation of data of vmacceptable quafity. 

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