Identifying Quality Costs for the Construction
The cost of quality of a product stretches from the preventive expenditure used to minimize failure to those costs involved in maintaining quality levels. Firstly, there will be the inclusion of the appraisal costs (AC) which entails the inspection and measurement of activities when the operation is ongoing to determine their conformity to the required standards (Afthanorhan et al., 2019). Some appraisal costs include testing, inspection, and equipment (Syreyshchikova et al., 2021). Secondly, preventive costs (PC) consist of all activities done before the start of the operations to warrant the good quality and inhibit poor quality services. Preventive costs include training, quality improvement teams, and process reviews (Sousa and Nunes, 2019). Thirdly, the construction of the dementia nursing home will involve internal failure costs (IFC), which entail all the expenses incurred to cater to the defects identified before product delivery (Mills et al., 2020). For instance, a product may warrant re-inspection and re-testing before delivery. Lastly, the construction will involve external failure costs (EFC) incurred after a customer gets the products or services. These quality costs have been tabulated in Table 1 of the following section.
Calculating the Estimates
Cost of Quality= PC+AC+IFC+EFC
Table 1. Estimates of Quality Costs Involved in Dementia Nursing Home Construction
The grand total in the above table represents the cost of quality involved in the construction. The reason is that:
- Grand Total= AC+PC+ Failure Cost (IFC and EFC) = Cost of Quality
Therefore, the cost of quality, in this case, would be $244,300 for a fully working dementia nursing home.
Cost of Quality Involved in Insufficient Quality Management Staff
For a business to attain prosperity, a quality management system must sustain its economic relevance in the market. Therefore, the quality management staff is important as it helps the business see that key organizational principles are not overlooked (Prístavka and Krištof, 2018). These include; strong leadership, customer focus, people’s involvement, system approach, process approach, factual decision making, continuous improvement, and improving the value of the company, the suppliers, and its clients (Ghayour and Dehghan, 2021). The lack of quality management staff leads to a lack of these important elements (Balouchi et al., 2019). Poor quality products and services often lead to customer dissatisfaction, leading to decreased customer loyalty and hence loss of revenue by the business.
Cost of Quality Involved when Offering Services without Customer Expectation Survey
Cost of quality is when the management fails to deliver according to customers’ expectations. It refers to the losses the organization may incur if its deliveries do not match the customer’s expectations (Amado et al., 2022). Some of them include; that they are most likely to lose their customers because, in this case, the customer’s expectations will not match the services delivered to them (Al-hamad, K.S., and Abdul-Sattar, 2022). At some point, they might ask for compensation for the losses they might have made in the process (Obaid et al., 2019). Some decide to do business elsewhere where the deliveries match their expectations (Castro et al., 2019). It might also lead to a loss in potential customers since they might come across people complaining about that organization’s ignorance of the customer expectations (Huckfeldt et al., 2018). A customer expectation survey ensures they understand that the survey is about them and that they know how important their feedback is to you (Feng et al., 2019). It is used to measure whether your services satisfy your customers and help them achieve success.
Reference List
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