Quality Management in the Hotel Escargo - Essay Example

Response to the Assessment I believe that Hotel Escargo incurs both prevention and appraisal costs. The mission of Hotel Escargo is founded on the pillar of delivering total quality services that prioritizes customer satisfaction. Ensuring customer satisfaction requires excellent amenities, relaxed environment and hiring knowledgeable and skilled employees. The management must incur the price of conformance for the hotel to feature quality in its service delivery. The price of conformance consists of prevention and appraisal costs.

The writer argues that prevention costs should be ranked first before appraisal costs. This statement is true because business enterprises are required to first institute mechanisms to keep defects from occurring during the production process. Appraisal costs will arise when striving to detect defects through inspections, tests and audits. I agree with the fact that most companies allot 10-15 percent to prevent costs in typical situations; however, prevention costs should be maintained above 70 percent of total costs of quality.

Olson argues that the in the ideal situation, proportion of prevention is highest among the total costs of quality (27). Prevention costs that the management need to consider include quality planning, check-in and check-out system development and management, workforce training and employee development. Appraisal costs relevant to Hotel Escargo include room cleaning and inspection expenses, administering customer feedback survey, and room service audits. I agree with the writer of the assessment appraisal costs should be ranked second after prevention costs.

The problem statement clarifies that there are aspects in check-in and check-out systems that need to undergo improvement. The management intends to develop a new process that is characterised by efficient and convenient in serving customers. In addition to appraisal and prevention costs, I think the writer would have considered internal failure costs such as repeating room cleaning and excessive room change requests. Work Cited Olson, R. E. (n.d.). Systems Quality Consulting: Cost of Quality as a Driver for Continuous Improvement.

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