Understanding the costs of Non-Quality

An excellent service is a success letter for any business, nothing will guarantee customer loyalty more than the quality of the service received. On many occasions people go to certain restaurant more for the quality of the service they receive than for the products they can buy there. The ISO 9000: 2000 system of standards defines service as the result of necessarily carrying out at least one activity at the interface between the provider and the customer, and it is generally intangible. The provision of a service may involve, for example, creating an environment for the customer in hotels and restaurants.

Unfortunately, the service has been the least important all the time, and they are the ones that, in reality, generate the most profits, because those who do not appreciate the service will in turn cease to be interested in the product, if, as almost always, the first involves the second.
Quality in services today is the fundamental strategy for success, taking into account the relative homogeneity of products, the marked segmentation of markets and the current economic crisis, as well as the limited availability of resources.
As for service in tourist entities, quality is the level of excellence that the company has chosen to satisfy its key clientele. It represents, at the same time, the extent to which such quality is achieved.
The quality of tourist services is very complex, the client buys attention, happiness, rest, support, speed and kindness. Hence the importance of standardizing services through the design, implementation, and control of processes that are carried out in organizations. (Farid, 2010).
A service reaches its level of excellence when it responds to the demands of a selected group. Each level of excellence must respond to a certain value that the client is willing to pay, depending on their wishes and needs. Services, particularly in tourism, are the set of supports that surround the act of buying.
When a customer values ​​the quality of a service does not dissociate its components, he judges it as a whole. The impression prevails and not the relative success of one or another specific action. And what is worse, the client usually stops at the weakest link in the quality chain and tends to generalize the defects of the entire service. It is clear, as is well stated in SITRANS-1, that the quality of a service is total or non-existent.
Quality and non-quality in restoration
Espinosa states (2010) that although the term is currently used restoration, in its specific meaning corresponding to the act of eating in order to feed, nourish and replace -o restore- energies, the concept of restoration is more comprehensive to refer to the set of processes that intervene in the selection, preparation, preparation, presentation, sale and control of the supply of food and beverages, as well as the control of accounting and economic results, as well as the guarantee of the quality indicators of products and services in general. In its beginnings it was necessary to create an establishment where these activities were carried out, which would be called restaurant. According to bibliographic references, the first to appear was the Beauvilliers, which opened in 1783 in France. Currently, they are many and very diverse types of restaurants that exist, which can be distinguished according to the service they provide, having restoration as their common factor, as an example they have the following definitions or classifications:
Restaurant: It is one that is designed for the service and consumption of food equivalent to breakfast, lunch or lunch. The characteristics of the service, the furniture, the physical-environmental conditions, along with other factors provide the differentiating elements of these establishments.
Restaurant Buffet: This type of restaurant offers customers the possibility of composing their own food, within a variety of dishes that are presented to them, offering them faster service. It has special characteristics, it is considered informal and due to its versatility, organization and modality, the forms in which it is presented can be varied.
Restaurant International: It is characterized by offering a menu in which varieties of international dishes are presented and whose atmosphere is elegant, sober, intimate and pleasant. In some cases, the menu has a specialties section of the chef, the house, the region or the local.
Specialized Restaurant: The one whose menu is mainly based on a specialty, which can be Cuban cuisine, fish and seafood, Chinese and Italian food, among others.
Theme restaurant: One whose validity of the general design concept characterizes and distinguishes it to reinforce the type of product it offers, referring to a specific theme such as: Art, sport, a country, a region, an era.
Luxury or Gourmet Restaurant: This is characterized by establishing a balance between excellence in the quality of services, the supply of food and beverages and comfort.
Classification of restaurants
The category of a restaurant has a great weight when choosing from a range of possibilities. Hence the importance of classifying it according to compliance with certain requirements that distinguish it above others.  
Processes and their importance in achieving quality in restoration
The processes are designed to make any task more feasible and functional. Generally, they are developed through a logical concatenation of the actions that compose them, by means of which repetitive activities are eliminated, which allows to save clients inconvenience and show them the greatest respect for their time. Companies have been shown to perform better through process work than procedure work. The former have a single manager, regardless of the functional areas involved in it, while the latter, in addition to not pursuing any results, can have countless bosses.
For the development of this section the following concept is taken: Set of actions that have a logical order and that are related to each other, which transform input elements into output elements. As main characteristics it defines the following:
  • They are unidirectional: Your destination is full customer satisfaction.
  • They are measurable: You can incorporate value measures such as: Time, cost, quality.
  • They are adaptable: Easy to change and improve.

In the restoration, specifically in the Food and Beverage area, numerous processes intervene, which must be efficiently managed if the costs it is all about and increasing profits.
The main processes are as follows:
a) Purchase-reception
The purchasing process is essential; Through this, food, beverages and other supplies necessary to carry out customer service are assured. Provisioning needs must be met in this process; properly select providers; define the quality, quantity and price specifications of the products; as well as guaranteeing high quality products. (Gallego, 2001).
It must be very selective when determining suppliers and it is also considered essential to periodically evaluate them, in order to have properties that justify the continuation or suspension of established relationships and obtain information that provides feedback on the execution and monitoring of the contract.
Also the proper reception of the merchandise is an extremely important aspect. When these are received, it is necessary to contrast the incoming products with the purchase order; relate them to the invoice; require the certificate of conformity that guarantees the product's compliance with the quality specifications; move them to the warehouse when they are accepted and prepare the daily reception report. (Espinosa, 2010).
b) Storage-distribution
The storage of food and beverages, although sometimes not given due attention, requires the skill and knowledge of whoever does it. The quality of the stored products and the hygiene of the warehouses are fundamental aspects to take into account to avoid economic damages and damage to the health of consumers.
The distribution process refers, in this case, to the exit of the merchandise from the warehouses to the different areas or departments of the kitchen. To ensure that this activity is carried out correctly, it is necessary that the delivery of the products is carried out only under the presentation of a document that justifies the request, and that the distribution is limited to established times within which the departments come to stock up on the necessary merchandise, (Gómez, s / a).
c) Culinary production
The elaboration, according to Farid, (2010), constitutes a key process, since it is the raison d'être of the installation. Said process is based on the preparation of food and drinks in a correct way as reflected in the technical data sheets and taking into account aspects such as:
  • Supply planning according to the market and suppliers.
  • Request of the orders in time for all the elaborations.
  • Execution, under correct hygiene practices, of food and beverage production.
  • Ensure stable quality levels.
  • Guarantee efficient cost control.

d) Services
Refers to the process carried out by contact personnel in the restaurants, where the attention of the client is required, and many moments of truth originate, which is why it is considered, as well as the elaboration, a key process. (Méndez, 2006).
Due to the characteristics of the service (intangibility, heterogeneity, simultaneity and expiration), it is very difficult to create a pattern that serves as a guide for its implementation, so factors such as the following must be guaranteed to achieve a better operation of this process. : The professionalism of the employees, speed, variety of the menus, as well as a pleasant setting, with the purpose of meeting or exceeding customer expectations (Trujillo, 2010).
Principles of Environmental Economic Quality
La Environmental Quality Economics (GEC, hereinafter) is not limited to finding out who the customers are, what they want and expect from the organization, but also emphasizes the measurement of their results to be able to manage failures effectively, and thus avoid that these failures directly affect the quality of services or products. This control leads to such failures not being seen or discovered by end customers. In this way you avoid customer nonconformities. Only in this way can products, services and their processes be oriented towards the best customer satisfaction.
Most of the processes of an organization have an economic effect. The essence of the GEC is to increase consumer satisfaction and reduce store costs, which can be achieved from good management of quality, which must be applied throughout the organization.
Quality costs. Classification
Within a great diversity of concepts, many scholars still do not agree with a common definition of what quality costs are, but at least they have come to understand them globally as those costs incurred in the design, implementation, operation and maintenance of the quality systems of an organization, those costs of the organization committed in the processes of continuous quality improvement, and the costs of systems, products and services that are frustrated or have failed due to not having the market success. I expected.
On the other hand, the cost of quality is not exclusively an absolute measure of performance, its importance is that it indicates the exact place where a corrective action will be most important for a company. Amat, (2000), analyzing the various items that make up quality costs and according to the specific functions and purpose to which each
One of them has separated the costs derived from quality costs and non-quality costs into four basic groups:
  • Evaluation Costs
  • Prevention Costs
  • Internal Failure Costs
  • External Failure Costs

These costs related to quality, says Farid, (2010), are not always derived from manufacturing operations, but from other collateral services such as customer service, purchasing and human capital.
Traditionally, it has been considered that the cost of quality is made up of the items corresponding to the insurance factors such as those of error detection and waste; however, the concept has evolved and quality costs are now understood as those incurred in the design, implementation, operation and maintenance of quality systems, including those related to continuous improvement systems. (Villar, 2000).
The same author, in the interest of revealing a classification that makes quality costs uniform, has distinguished two types of them: 
  1. The costs themselves, that is, the efforts to manufacture a quality product.
  2. The costs generated by not doing things correctly, called "default price" or "cost of non-quality".

Once these costs are identified, only half of the problem has been resolved. Applying corrective actions, evaluating the results and performing a periodic analysis is also part of the tasks to be followed in order to achieve the proposed objective.
Carrying out an analysis of quality costs allows, among other aspects, according to Roteta, (2010), to apply improvement techniques to products and processes. This link between costs and improvement tools is what guarantees the success of quality cost control programs.
Therefore, it is determined that quality costs are those that are clearly necessary to satisfy the stated and implicit needs of customers, with the aim of achieving zero defects. They are mainly due to the prevention and evaluation activities. The evaluation costs should not be confused under any circumstances with the costs derived from poor quality, since they are considered necessary expenses to generate it.
Prevention Costs
It is better to be cautious than to have to regret, says an old proverb, and here in a matter of quality it becomes clear, because as long as possible defects are corrected, the less likely they are to commit them. Prevention costs are defined as the costs of all activities specifically designed to reduce or avoid defects in products or services without complex, since any action that promotes improvement can be classified as prevention. (Trujillo, 2010). However, other authors agree when considering them closer to an investment than an expense.
This last definition is considered appropriate, since by incurring these costs, obviously, it is expected to obtain higher profits and that the profits will be higher than the investment, which makes it profitable, above all, due to being able to anticipate possible deficiencies, achieve zero defects and thus increase the sales margin. Among the prevention costs, Roteta, (2010), provides the following examples: 
  • Quality planning
  • Evaluation of new products
  • Elevation of personnel qualification
  • Quality information
  • Stimulation for quality
  • Quality system development
  • Evaluation Costs

When it is intended control the quality after the product is made, costs are also incurred, these are called evaluation costs, which according to Roteta, (2010), are the costs corresponding to determining if the products or services meet the specifications.
Among these costs, according to the author herself, are the following: 
  • Entrance inspection
  • Process inspection
  • Final and departure inspection
  • Product testing
  • Conformity certification
  • Classification

Non-quality costs. Classification
If there have inevitably been errors in the processes, production or technological equipment, this undoubtedly represents an irreparable loss of products, money, labor time, labor and raw materials, then it is said that these are costs of not quality.
Roteta, (2010), conceptualizes them in the following way: They are those costs that the company supports, derived from products or services that do not comply with the quality requirements. These are divided into internal and external failures. In turn, failure costs can be both tangible and intangible. In which tangibles, they can be calculated with conventional accounting criteria, generally accepted, and are usually accompanied by a cash outlay.
Internal failure costs
There is no perfect company. But achieving perfection must be a search that starts from the inside out, so that flaws can be detected before being perceived by the customer, which can lead to unpredictable situations.
According to Calaña, (2010), internal failures are the costs that occur within the company, due to poor quality. Failures, errors, which can be detected before the product becomes perceived by the consumer. When these come to be evaluated by customers, the cost of the failure itself becomes larger. Therefore, it is essential to detect faults and defects internally. As examples, it provides the following: Waste, stoppages, retesting and design changes.
External failure costs
According to Calaña, (2010), the costs for external failures are the costs originated by defects not detected in time before they reach customers. Failures detected outside the company represent, at a minimum, a cost of a magnitude equivalent to the same failure internally. From here, the cost can increase in an ostensible way, depending on the importance it has had on the clients. Examples of these costs can be: The costs for complaints and claims, loss of image, returns, discounts, guarantees, repairs and product reliability.
Finally, it cannot be forgotten in this section that for the purposes of the management economic of any company should also be considered costs, so-called expenses, the fact that they are not incorporated into the product or service does not mean that they are not. An example of this may be the costs of transportation and advertising that is carried out to market salable items.
Control of non-quality costs
In the tourism sector, particularly in catering, as in other areas where service provision prevails, it is necessary, in order to achieve customer loyalty and thus increase the profit margins of the facility, pay careful attention to the efficiency and efficiency of their processes and operations, but above all, they must have an exact control of their costs, mainly those that are derived from non-quality.
Calaña, (2010), determines that there are factors that can influence clients' previous expectations and one of them is represented by the promises made previously, from which derives the high impact on the perception of quality that the misleading advertising. The general principle should be not to promise more than can be fulfilled, creating dissatisfaction and a product of dubious quality, leading to non-quality.
The non-quality not only deteriorates the image of the establishment, but there are also considerable losses, since according to Trujillo, (2010), the benefits of not making mistakes are considerable, since only 1% of dissatisfied customers produces up to 12% of lost customers. Situations of this type can lead to marketing and credibility problems, which can decrease income and sometimes increase non-quality costs. Studies carried out on "hidden costs" speak of a "multiplier effect", which causes an impact about three times greater than that initially evaluated. Non-quality costs that are normally measured are waste, rework or reprocessing and guarantees, without taking into account such as: Loss of orders, increase in stock, delays, decrease in
capacity, delivery problems and everything translated into nothing less than the loss of regular and potential customers. This type of cost is or should be an instrument that senior management must apply to assess the evolution of quality, the latter achieved through continuous improvement, essential detail for the development of good quality. (Calaña, 2010).
By assuming strict control over these costs, you can get the exact measures of what to do and where to do it to prevent waste and discomfort, the main cause of high costs and low profits.
Non-quality costs are the costs generated when things are not done as they should, from the first time, they are the costs of time, effort and lost materials caused by non-compliance situations, all this translated gives lost opportunities and money, although today there are some companies that view the existence of it as something trivial and current, without significance.
Calaña, (2010), states that: Non-quality must be combated with a set of actions that allow action to be taken against non-conformities that may exist in services. For this, a diagnosis must be made in which the nonconformity situations are identified, gradually improving the ways of obtaining the information that this diagnosis allows. These detected situations must be attacked and resolved permanently, involving each of the relevant areas, since if the non-conformity is repeated it means that the root cause found was not the true one or that the corrective actions were not effective or sufficient. From this, proactive actions must be developed to avoid situations of nonconformity and to reduce non-quality costs, where the best solution is won, not with impositions but through the process of solving problems.
Importance of a procedure to identify non-quality costs in restoration processes

There is no doubt that the quality is given by the client, but there are attributes that help to have a better perception of it, according to Calaña, (2010), the architectural environment, the setting, the speed of service, the friendliness, the quality in the presentation and preparation of meals, the design of the menu, among other elements, create a pleasant atmosphere for the consumer, making it not interesting for them if the prices are more or less expensive, but rather in the satisfaction they feel when visiting the place and the pleasure that it gives you.
However, the bureaucracy, the loss of orders, the confusion in the orders, the delay in the services and other failures, make customers feel inconvenience and do not want to return. According to him, the greater the dissatisfaction of customers in quantity and frequency, the greater the number of compensations, courtesies or other types of royalties that must be assumed to reduce negative impressions from consumers.
When it is intended to enhance a service with higher quality, the costs associated with it may be higher than initially thought, both in monetary terms and on an effort or time scale. It should also be borne in mind that as quality is invested, non-quality costs are reduced, so it is necessary to find an intermediate that balances the needs of the company and the expectations of the client, in order to reach obtaining the benefits that the quantification of these can have.
As it can be seen, identifying the costs of poor quality and taking corrective actions in order to eliminate them can be a decisive step in the success of the company, at least in those costs that can be quantified, in the event that they do not proceed, they must be carried out other techniques or mechanisms.
Consequence of non-quality costs
Several authors agree that the costs of non-quality can mean around 20 to 25% of the total invoiced values. Many also claim that there are three aspects to determine them: 
  1. Performance cost: Costs related to doing things well, that is, error-free costs.
  2. Rework Costs: Costs related to doing things again, reinstating, repairing, or correcting failures.
  3. Prevention and detection costs: Costs related to quality controls, that is, the identification of possible errors before they turn to the customer and the detection of errors once the product or service has been delivered to the consumer.

The latter, by the way, should not be confused. Costs derived from poor quality are not the same as those considered as necessary expenses to generate it. Consequently these would be quality costs.
If losses are not calculated when effective and efficient processes are not achieved, then the necessary information will not be available to determine the need to establish processes that guarantee the necessary effectiveness and efficiency in all restaurantsIn other words, there will be no way in quantitative terms to achieve continuous improvement.

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I am a dreamer and in my dreams I believe that a better world is possible, that no one knows more than anyone, we all learn from everyone. I love gastronomy, numbers, teaching and sharing all the little I know, because by sharing I also learn. "Let's all go together from foundation to success"