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Objective
This assignment examines the importance of the cost of quality
to an organization. Through this, we will gain a better
understanding of how we can measure the cost of quality in an
organization and what benefits can be gained from the cost of
quality.
Scenario
This is a true story that dominated the media in Canada in the
summer of 2008 and shook an established and trusted company
to its core. Once the crisis was over, 22 people had died as a
result of tainted meat. More details are easily available online
but the following is from an April 2013 Financial Times article.
The Story
Maple Leaf Foods is one of the leading food processing
companies in Canada, where many of its processed meat brands
are household names. The company also supplies restaurants
and hotels.
The Challenge
On August 12 2008 management became aware of a possible
case of listeriosis contamination at one of its meat processing
plants near Toronto. By August 23 the contamination had been
confirmed and by the end of September more than 20 people’s
deaths had been linked to the listeriosis outbreak associated
with Maple Leaf Foods. Many more fell ill. The Canadian press
attacked the company and a number of class-action lawsuits
were launched on behalf of victims and their relatives.
Consumers started to avoid Maple Leaf brands, and trade
customers began switching to other suppliers.
The Response
Maple Leaf Foods responded swiftly. All products from the
affected plant were recalled as soon as the presence of
listeriosis was confirmed. Michael McCain, chief executive,
took personal charge. He later told the Toronto Globe & Mail
that in his handling of the crisis, “there are two advisers I’ve
paid no attention to. The first are the lawyers, and the second
are the accountants.” His public offer of a full apology and
acceptance that Maple Leaf Foods was solely responsible was
considered a brave decision because it left the company open to
legal action. Mr. McCain accepted this risk: the point was to act
first in the interest of public health and then to be open and
transparent. The management dealt with the crisis on a number
of fronts, including PR, strategy and restructuring.
Deliverables
Analyze the above scenario using the 4 Costs of Quality given
below:
· Appraisal cost
· Prevention cost
· Internal failure cost
· External failure cost
Your detailed analysis and report should reflect:
· Root cause(s) of the issue
· What should have been done to prevent the current situation?
· What was done to turn the situation around?
· How did Mr. McCain manage this crisis?
Constraints
Follow all reporting and assignment guidelines. Do not produce
a Q & A format report. Instead embed the answers in a logical
manner.
· Length – 5 -7 pages excluding cover page, double spaced MS
Word file.
· Submit using the assignment tool.
Upload and submit as a .pdf file
Submit using the assignment tool.
Evaluation
Please note that professionalism of presentation, while not a
specific evaluation criterion, may influence your overall grade
for this deliverable if the work produced is significantly lower,
or higher, than what would be expected from a professional
submission. Items that will be taken into consideration as part
of professionalism would include:
· Sentence structure and grammar
· Spelling
· Clear formatting
· Choice of language and terminology
· Clarity of structure (readability)

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ObjectiveThis assignment examines the importance of the cost.docx

  • 1. Objective This assignment examines the importance of the cost of quality to an organization. Through this, we will gain a better understanding of how we can measure the cost of quality in an organization and what benefits can be gained from the cost of quality. Scenario This is a true story that dominated the media in Canada in the summer of 2008 and shook an established and trusted company to its core. Once the crisis was over, 22 people had died as a result of tainted meat. More details are easily available online but the following is from an April 2013 Financial Times article. The Story Maple Leaf Foods is one of the leading food processing companies in Canada, where many of its processed meat brands are household names. The company also supplies restaurants and hotels. The Challenge On August 12 2008 management became aware of a possible case of listeriosis contamination at one of its meat processing plants near Toronto. By August 23 the contamination had been confirmed and by the end of September more than 20 people’s deaths had been linked to the listeriosis outbreak associated with Maple Leaf Foods. Many more fell ill. The Canadian press attacked the company and a number of class-action lawsuits were launched on behalf of victims and their relatives.
  • 2. Consumers started to avoid Maple Leaf brands, and trade customers began switching to other suppliers. The Response Maple Leaf Foods responded swiftly. All products from the affected plant were recalled as soon as the presence of listeriosis was confirmed. Michael McCain, chief executive, took personal charge. He later told the Toronto Globe & Mail that in his handling of the crisis, “there are two advisers I’ve paid no attention to. The first are the lawyers, and the second are the accountants.” His public offer of a full apology and acceptance that Maple Leaf Foods was solely responsible was considered a brave decision because it left the company open to legal action. Mr. McCain accepted this risk: the point was to act first in the interest of public health and then to be open and transparent. The management dealt with the crisis on a number of fronts, including PR, strategy and restructuring. Deliverables Analyze the above scenario using the 4 Costs of Quality given below: · Appraisal cost · Prevention cost · Internal failure cost · External failure cost Your detailed analysis and report should reflect: · Root cause(s) of the issue
  • 3. · What should have been done to prevent the current situation? · What was done to turn the situation around? · How did Mr. McCain manage this crisis? Constraints Follow all reporting and assignment guidelines. Do not produce a Q & A format report. Instead embed the answers in a logical manner. · Length – 5 -7 pages excluding cover page, double spaced MS Word file. · Submit using the assignment tool. Upload and submit as a .pdf file Submit using the assignment tool. Evaluation Please note that professionalism of presentation, while not a specific evaluation criterion, may influence your overall grade for this deliverable if the work produced is significantly lower, or higher, than what would be expected from a professional submission. Items that will be taken into consideration as part of professionalism would include: · Sentence structure and grammar · Spelling · Clear formatting
  • 4. · Choice of language and terminology · Clarity of structure (readability)