Question

What are the costs of quality that are incurred by a restaurant that serves food that is eaten raw: salads (for example)? Discuss these costs under the four headings (prevention, appraisal, internal failure, and external failure). A full discussion has to include this restaurant’s supply chain also.

Answer 1

the cost of quality during each part of supply chain can be summarized as below

Supply Chain	Prevention	Appraisal	Internal Failure	External Failure
Sourcing	Good / branded quality products come at a price	Regular audits to ascertain quality is as promised	Cost of appointment of new vendors
Transportation	Technology to prevent spoilage like cold storage	Technology to monitor state of vegetables	Loss due to wastage during transportation
Preparation	Investment in staff training	Hiring of supervisor to monitor standard procedures	Re-work will increase cost of materials	Loss of reputation if food is not prepared well
Serving	Investment in staff training	Manager to attend customer complaints		Loss of reputation if service quality is bad