Question

Consider Starbucks as a production system in which the final product is a customer. For this​ system: a. Define quality from the​ producer's and​ customer's prospective. b. Develop a​ fitness-for-use description for final product quality at Starbucks c. Give examples of the cost of poor quality​ (internal and external failure​ costs) and the cost of quality assurance​ (prevention and​ appraisal) cost for Starbucks

Answer 1

1. Quality from producer's perspective -

(a) Compliance to the industry benchmarks of quality and established parameters of the company.

(b) Company's perception of customers' choices, based on survey results, customer reviews etc.

Quality from customer's perspective

(a) Fitness for consumption based on common customer tastes and beliefs in the region.

(b) Freshness, wholesomeness, innovativeness, presentability and differentiation from the others.

(c) Value proposition from the customer's point of view for the money paid.

2. Fitness for use perspective ( Example is coffee)

Having optimum level of attributes like , temperature, sweetness, bitterness etc. that makes a unique flavour that has highest acceptability among customers. Being made of the freshest ingredients and presented in the most preferred manner.

3.

Cost of poor quality

(a) Rejection by the customers leading to bad name and loss of future prospects and repeat customers.

(b) Lawsuit for the damages caused by poor quality ( say contaminated coffee owing to negligence of staff)

Cost of quality assurance

(a) A new testing procedure that needs a new machine nd two full time employees to manage the quality.

(b) A new design of workplace that reduces the output but improves the quality significantly.