Quality and Cost (Unit 1 IP) Research Paper Example | Topics and Well Written Essays - 500 words

Quality and Cost (Unit 1 IP) - Research Paper Example Also, this means the Hotel might have to incur additional costs in terms of entertaining him during the waiting period. For example, they might have to serve a complementary meal depending upon situation or a seat in the customers lounge. This is an internal COQ. 5. No evidence of the clerk asking for room preference. This may lead to the guest being dissatisfied with the room he gets and may lead to bad word of mouth and loss of business. This is an example of internal COQ. Average check-in time exceeding the 4 minute standard, which in many cases might add to the customer dissatisfaction as well as the hotel is not getting the desired rating, and hence loss of business in terms of opportunity costs. This is an example of an external COQ. Usually in case of services, it is often difficult to differentiate costs as external or internal ones since the delivery of service is not detachable from the production of the service. Services being process based, the process cost can not usually be categorized as external. In order to achieve consistency in the behavioral aspect of the check-in process, for example, the standard three times the guest needs to be addressed by name, the staff needs to be trained accordingly. Sometimes, when the standards are not being met, the staff needs refresher trainings as well. This is a possible preventive cost of quality in the given scenario. Hotel Escargo might decide to hire an external agency to survey the process efficiencies for the check-in and check-out procedures which appear to be faulty for further investigation. This is an additional cost of quality and can be termed as an assessment cost. All the above identified costs shall be listed and then the data for the same shall be collected by quantifying the losses or costs incurred as costs of quality. They shall all be added (Pyzdek, 2000) to give an estimate of the cost of quality for