Cost of Poor Quality (COPQ) in the Hotel Industry


Prashant Hoskote

Hi guys!
I need desperate help.
I would like information on Cost of Poor Quality in the Hotel Industry. More specifically, what kind of cost heads would fall as poor quality costs in a 500 bed five star hotel? What would fall under Internal Failure Costs, Extrenal Failure Costs, Appraisal Costs, Prevention Costs?


Geoff Cotton

Quite Involved in Discussions
Perhaps this forum should 'brainstorm' the Cost of Quality model for you.

Have you drawn up a Process Map or any sort of Customer Needs Map?



Fully vaccinated are you?
Just to start things off:

Apprasial costs would probably include:
Checks folks do to ensure the maids have made up the room properly (you folks do sample checks, don't you?

Prevention costs would probably include:
Quality Planning such as path for registration and getting folks to their rooms.

Internal Failure costs would probably include:
Rework (room made up wrong - not enough towels, no soap, no fruit, etc.)
Process failures such as clerk forgets to turn phone on, no bell-person available to carry luggage or other similar error. Some may be a perception issue.

External Failure costs would probably include:
Complaint adjustments
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