When hygiene continues to be an indirect cost function it will not be owned by any management end. An indirect cost can be converted into a direct cost as long as there is an allocation base available for it (Kaplan & Atkinson, 1998). In this context as long as the management can allot an allocation based either on the number of units that should be checked or the number of times in a day that a check should be conducted etc, (or based on previous studies or based on other successful companies) then the same can be done and the Hygiene can be converted to a direct cost (Kettner et al, 2012). If it were to be added as a direct cost to production, then it will add to the overall production costs and will be used in the calculation for production efficiency. However on the other hand, if this cost was to be added from outside as an indirect cost, it will be considered an overhead. Given the fact that management wants to focus on Hygiene, it should add it as a direct cost in production.
Hygiene Team performance: In measuring Hygiene Team performance, there could be two ways to do this, primarily there could be the cost controlled inspection, where the focus will be on the ‘time taken’ per inspection activity (a cost control focus). A quality focus will not worry about the time or the cost and would worry about the occurrence of a hygiene incident. There is a rule that states when it comes to quality there is a 1:10:100 ratio (Renaud, 2014). Studies across different industries states that in terms of cost and time what can be fixed in development at 1 as a base ration would be 10 when it comes to production and 100 when it comes to delivery at the customer end. If the errors were to reach the customer, the problems would hence be many times more than if it were fixed in production. Here there would be an increase in production costs; however the overall costs that would be associated with regaining lost reputation when it comes to problems at the buyer end would be higher. One unhygienic product would mean increased marketing costs, increased overhead in the form of sales returns and more.