Suppose, for example, that a firm has decided to improve the quality of its material inputs through the implementation of a supplier selection program. The objective is to identify and use suppliers who are willing to meet certain quality standard. As the firm works to implement this program, additional costs may be incurred (for example, review of suppliers, communication with suppliers, contract negotiations, and so on). And, initially, other prevention and appraisal costs continue at their current levels. However, once the program is fully implemented and evidence surfaces that the failure costs are being reduced (for example, less nework, fewer customer complaints, and fewer repairs), then the company may decide to cut back on inspections of incoming materials, reduce the level of product acceptance activities, and so on. The net effect is a reduction in all quality cost categories. And quality has increased