Charlie’s Fish House (CFH) is a fish restaurant (fictitious) that opened in 2018. Thanks to your help on Exam 1, they have recently improved their output, due to changes that increased their design and effective capacity. As you may remember, the restaurant has received great reviews on Yelp, with customers praising the variety of the food, complexity of the dishes, and overall dining environment. This is not accidental; they have taken a number of steps to ensure a high level of quality. First of all, they have trained their workers well, with each new worker receiving intensive training for their first two weeks on the job. Twice a year, all employees complete a training where principals of Total Quality Management are explained, and workers are challenged to find ways to apply these principals at CFH. As part of their operations, orders that come out of the kitchen are inspected by servers (for both correctness and eye appeal) before the order goes to the customer. When an error is found, the entire or part of the meal is replaced. Despite this system, occasionally a customer will get served the incorrect meal. When the server is made aware of this, the meal is then corrected and a discount is given to the customer on their bill, or they are given a free dessert item. While customers are usually fine with this, they occasionally have customers who are not satisfied with these concessions, and likely do not return. Once a month servers at CFH randomly ask customers on a given day to complete a survey about their experience and if there is anything that can be improved. From the narrative above, discuss which actions undertaken at CFH fits into each of the four types of quality costs: appraisal costs, prevention costs, internal failure costs, external failure costs. Provide at least two recommendations for how CFH could further enhance the quality of the food and experience they provide their customers.
Charlie’s Fish House (CFH) is a fish restaurant (fictitious) that opened in 2018. Thanks to your help on Exam 1, they have recently improved their output, due to changes that increased their design and effective capacity. As you may remember, the restaurant has received great reviews on Yelp, with customers praising the variety of the food, complexity of the dishes, and overall dining environment. This is not accidental; they have taken a number of steps to ensure a high level of quality. First of all, they have trained their workers well, with each new worker receiving intensive training for their first two weeks on the job. Twice a year, all employees complete a training where principals of Total
- From the narrative above, discuss which actions undertaken at CFH fits into each of the four types of quality costs: appraisal costs, prevention costs, internal failure costs, external failure costs.
- Provide at least two recommendations for how CFH could further enhance the quality of the food and experience they provide their customers.
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