Quality Management and Continuous Improvement DB Week One - Essay Example

Quality Management and Continuous Improvement Question The “cost of quality” is an assessment of all the outlay associated with providing and selling products and services of inferior quality to the clients (Warren et.al, 2011). This can be achieved by keeping records of the processes such as checking-in and checking-out time, and then identify areas that require upgrading. Obtain responses from the workers providing the services directly to clients such as receptionists and bellman and then distribute then distribute the cost to the cost elements.

Question 2Cost of appraisal is the cost incurred by the hotel management in assessing and investigating performance in order to ensure their services are valuable and adhere to established standards (Warren et.al, 2011). For example, cost of auditing workers, software, customer satisfaction and speed of executing services.Prevention costs are the expenses incurred in an effort to minimize appraisal and failure cost (Warren et.al, 2011). For example, the cost of inspecting check-in and check-out processes, evaluating the employee’s performance, inspecting cleanness of the rooms and the process of changing over the rooms at the client’s request.

Internal costs are the expenses the hotel will incur in establishing poor services or products such before they are actually offered to the clients (Warren et.al, 2011). For example, inappropriate rooms, delays in check-in, check-out and cost of rearranging the room, repair of the rooms, unoccupied capacity, cost of motivating workers, cost of redirecting clients to other hotels.External failure costs are the cost related to defect in products or services after it has been offered to the clients (Warren et.al, 2011). For example, the customer dissatisfaction with the quality of rooms may cause them fail to continue visiting the hotel in the future.

Question 3Cost of appraisal and external cost are very essential because they assist the management to evaluate how customers view the services and suggest what the management may do in order to increase customer satisfaction.  ReferenceWarren, C., Reeve, J. & Duchac, J. (2011). Financial & Managerial Accounting. Cengage Learning: 1255-1287.