Question

Based on the case study Chipotle Mexican Grill: Quality AtStake. Identify and give specific examples of the different costs of quality incurred by Chipotle in dealing with this quality crisis. ( Prevention costs, Appraisal costs, External failure costs, Internal failure cost)

Answer 1

Chipotle Mexican Grill's quality crisis highlighted various types of quality costs including prevention, appraisal, internal failure, and external failure costs, which encompass training, monitoring, waste management, and brand damage control efforts.

Step-by-step explanation:

Costs of Quality in Chipotle Mexican Grill's Quality Crisis

Chipotle Mexican Grill faced a quality crisis that led to various costs associated with maintaining and restoring the quality of their offerings. These costs include:

• Prevention costs: Expenses incurred to prevent quality issues, such as training for employees, implementing new standard operating procedures, and sourcing ingredients from reputable suppliers.
• Appraisal costs: Costs related to measuring and monitoring activities to ensure quality standards. For Chipotle, this could include regular health inspections and audits of supplier facilities.
• External failure costs: Consequences faced when failures are detected after the product reaches the customer. For Chipotle, this might involve settlements from lawsuits, customer refunds, and brand damage control efforts, such as marketing to rebuild the brand image.
• Internal failure cost: Costs that occur before a product reaches the customer, indicating a failure to meet quality standards. This could include the waste of contaminated food and the loss of productivity due to shutdowns for deep cleaning and investigation.

These costs exemplify the financial impact of a quality crisis and the importance of adhering to rigorous quality control measures.