Memo:

As we continue to move toward the end our quarterly objectives. I wanted to take the time to explain some of our costs. In our particular field of designing and manufacturing products, we are always engaging in ways that we can mitigate loss and improve our processes. Performing such changes will give a stronger presence in the market by allowing us to remain competitive.
While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas that we must strive to mitigate any loss from our past experiences.
Prevention cost is an expense related to our efforts in quality control. If we take necessary measures to proactively identify and prevent loss from our processes, the cost associated with actions would be our prevention cost. This was recently seen by the required staffing training we implemented for all employees working on the assembly line. This was our way of making sure that we out our best foot forward and in-turn reduced potential loss seen in prior months of similar capacity.
Appraisal costs are how we were able to identify the need for the previously mentioned preventative cost. Appraisal cost is the cost incurred for activates helping us to make sure we have unswerving quality. This can be seen with running inspections on equipment or activities within different departments. While attempting to establish a benchmark for our assembly line, we noticed that the evening crew was far below the production as the morning shift, even though, they have similar staffing. It was due to this appraisal that we were able to identify the incorrect training being