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Cost of Quality in Operating a Taxi Vehicle and Relevance of a Quality Management Guru's Theory

Cost items incurred in operating a taxi vehicle

Question 1(a) In the competitiveSingapore land transport sector, taxicompaniesneed to incur costson qualityto provide good service to customers.Write an essay toillustratethe Cost of Quality incurred in operating a taxi vehicle by a taxi company and/orthetaxi driver. You mustderive a list of cost items, such as quarterly vehicle maintenance and educating the taxi driver. Describe and estimate the value of each cost item.Pleasestate yourassumptions. and indicate the word count(b)Refer to the BUS363 Study Guide on a Quality Management Guru’s theory on Cost of Quality.Introduce and showthe relevance of his theoryontheCost ofQuality for providingataxi ride. Compare his cost estimations in percentages of sales to those that can be derived from your answers in Question 1

(a).Keep to a word limit of 300 wordsand indicate the word count. Note: You may assume the average revenue of ataxi driver is $4,000 per monthfor working 20 days

b)Besides supportingcompanywide philosophiesand practices, the principlesof TQM can be applied to allfacetsof a business. Safety is an important aspect of taxi service. In an essay, appraiseany four(4)principlesof TQM on how they can beapplied to improvesafetyof a taxi serviceby proposingan action plan for each principle.Provide relevant examples.

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