Questions to be answered - Essay Example

If this freezer breaks down due to poor maintenance it will cost them money to repair or replace the broken freezer. Either way, the restaurant needs to have the freezer fixed or replaced in order to keep the products from spoilage and to let the restaurant fully operate. That is why it will cause the restaurant expense if proper maintenance isn’t observed. Second is wastage of resources, for example, ice creams in the restaurant needs to be stored in the freezer to prevent it from melting, if the freezer is broken due to damage or improper maintenance, it will cause the ice cream to melt, and once the ice cream has melted it cannot be served to the guest during the restaurant’s operation, thus causing the restaurant wastage of resources.

Third is disruption and inconvenience, for example, if the guest in the restaurant orders an ice cream and the freezer is broken due to damage and improper maintenance as stated above, it will cause disruption and inconvenience to both the guest and restaurant because the order of the guest will be delayed and the restaurant might need to order the ice cream from another outlet causing disruption and inconvenience because of poor maintenance of the equipment. Fourth is erosion of image and reputation, for example, if the restaurant has poor maintenance in their building causing water leaks from the roof and cracks from the wall and allowing termites to crawl out of it, it will give the guest a very bad dining experience and they could also share their unpleasant experience with their friends who are potential customers, thus causing the restaurant’s erosion of image and reputation.

Therefore, proper maintenance should always be observed to prevent these consequences from happening. Life cycle costing determines the present value of an asset during its operating life and its end life from initial capital cost, occupation costs and operating costs. It is beneficial to take this approach when managing maintenance because