Prevention Costs are costs related to the prevention of defects before they occur, Appraisal Costs are costs incurred by a firm as a result of its processes and performance levels. Internal Failure Costs are costs acquired by defects found during the production of a product or service, External Failure Costs are costs acquired by the defects found after the customer receives the product or service, and Ethical Failure costs are costs incurred by knowingly passing defective products or services to internal or external clients and as a result it also places the stockholders, customers, and employees at risk.
Prevention Costs
At Pump It Up, prevention is a very important aspect of the business because without that neither managers nor employees could prevent certain defects before they happen. Pump It Up updates or improves its processes to eliminate poor customer service because it is very important that every employee of the company has knowledge of all the products and services that the company offers so that it can easily satisfy all requirements of each customer. Also, services are completely customized that means that the company tries to be able to meet all the expectations of each client as best as possible; therefore, employees can give the best of them at each party or event. Customer service is extremely important for the company since that represents good reviews but especially that the company has higher profits. Moreover, their proven systems are one reason why Pump It Up stands above the rest. The ability to learn and adhere to their systems will help ensure their success in each event. From hiring to training, to retention, managing teams effectively is the essence of a successful business. Another way that Pump It Up measure customer service quality is throughout “surveys” from time-to-time they send surveys through email once the event is over. The surveys may request demographic information (such as age range, gender, etc.) and customer feedback.
Appraisal Costs
Pump it Up wants to make sure they are delivering the best services to their customers to every 6 months they will make sure all the inflatables are still intact and if something is wrong with any of them, they will purchase new ones. Pump it Up also makes sure that their staff is still fully trained and know what they are doing, training will take place if that is not the case.
Internal Failure Costs
Defining internal failure costs, we can say as costs that a company incurs when defects are discovered during the process of a product or service. One of the disadvantages that Pump It Up has in terms of internal failure cost is, for example, long registrations. Once the client arrives at the place, they must register for both the parents and the children who attend the event. Causing long waits for the rest of the clients who also want to make their own registration and even having the waiting area sometimes overcrowded.
External Failure Costs
Related to external failure costs we can say as costs related to the defects that are discovered after the customer has received the products or services. Pump it Up can be considered as external failure costs, slow service in the dining areas and a reduced space in the area where the party is held. When the customer makes the reservation of one of the three packages offered by Pump It Up, a detailed information about what the package offers to each customer and the maximum number of people. But sometimes this number exceeds causing the area to be to be too small and not enough space for all guests.
Ethical Failure Costs
Related to ethical failure costs can be defined as monetary costs associated with deliberately passing defective products to internal and external customers. Causing poor customer service. Pump It Up ensures that each of the services that they provide has the best quality. As a result, Pump It up may satisfy all the requirements of each of their customers.
No comments:
Post a Comment