What Are Cost Models?

The PAF cost model is a cost model established on the basis of the prevention identification and failure cost (PAF, Prevention, Appraisal and Failure) model, which is used to analyze the cost elements.

PAF cost model

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The PAF cost model is a cost model established on the basis of the prevention identification and failure cost (PAF, Prevention, Appraisal and Failure) model, which is used to analyze the cost elements.
Chinese name
PAF cost model
Foreign name
Prevention, Appraisal and Failure
Function
Used to analyze cost elements
Nature
model
The PAF cost model divides costs into prevention costs, evaluation (identification) costs, and failure (failure / loss) costs. Among them,
1) Preventive cost: the cost required to prevent malfunctions;
2) Evaluation (identification) cost: the cost of testing, inspection and inspection to assess whether the product or service meets the quality requirements;
3) Failure (failure / loss) cost: the cost of loss (such as re-service, re-processing, re-work, re-test, scrap) caused by the product's failure to meet specified quality requirements before delivery or post-delivery Costs of losses caused by products that fail to meet specified quality requirements (such as product maintenance and repair, warranty and returns, direct costs and discounts, product recycling fees, liability compensation).

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