As a new manager of a production division, you have made the decision to incur more quality costs than the previous manager of the division incurred. How can you defend quality costs to executive management?

It is often necessary to increase expenditures in one or more areas in order to decrease other costs. For example, external failure costs, which are serious and potentially devastating to companies, can be reduced (theoretically to zero) by paying more attention to quality issues early in the value chain. Increasing expenditures related to prevention and appraisal can result in significant overall cost savings in the long run.