Business I / Operations Management
Practice question · True or false

In quality economics, detecting a defect is generally cheaper than preventing it.

Hints
  1. How does the cost move as the defect travels?
  2. The 1-10-100 rule.
Show the answer

False

Why

False. The order runs prevention < detection < failure, usually by an order of magnitude at each step: a design review costs less than an inspection, which costs far less than a recall. That escalation is the whole argument for building quality in rather than testing it in at the end.

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