Service- Managing Quality Lecture 3 PDF

Service- Managing Quality Chapter 3  What is Quality? The British Standards definition of quality ( British Standard 4778, 1987 ) is ‘ the totality of features and characteristics of a product or service that bear on its ability to satisfy a stated or implied need ’. It is the...

Service- Managing Quality Chapter 3  What is Quality? The British Standards definition of quality ( British Standard 4778, 1987 ) is ‘ the totality of features and characteristics of a product or service that bear on its ability to satisfy a stated or implied need ’. It is these ‘ stated or implied needs ’ that the operation must satisfy. The customer translates these needs into a series of expectations of the service or product they will experience. If the restaurant meets or exceeds these expectations, then the customer will feel satisfied and will feel that they have received ‘ quality ’. If the restaurant does not meet their expectations, then there is a gap between customer expectations and the perceived characteristics of the service or product delivered to them and quality will not have been provided. What is Quality? American Society for Quality (ASQ). “The characteristics of a product or service that bear on its ability to satisfy stated or implied needs, and a product or service that is free of defects.” The ASQ suggests that: Quality is not a program; it is an approach to business. Quality is defined by the customer through his or her satisfaction. Quality is aimed at performance excellence; anything less is an improvement opportunity. Quality increases customer satisfaction, reduces cycle times and costs, and eliminates errors and rework, and has positive impacts on profits. Why Quality is important for a nutritionist? Quality in the Food Service System A systematic approch to Quality Management The quality management cycle shown in the figure was developed to help identify and correct any errors that occur during production or service and to lead to lasting quality improvement. The foundation of the cycle is one of continual improvement to reduce the gap between customer requirements and the actual performance of the operation.  The Quality Management Cycle The cycle starts by planning what improvement to make based on a clarification of the problem and the development of hypotheses about the underlying causes. The ‘ do ’ phase implements a small-scale experiment to correct the situation that is then ‘ checked ’ through measurement. The final step ‘acts’ to implement these quality improvements. The cycle is essentially a learning process and after one cycle is completed another one starts.  Explain the Quality Management Approaches The development of approaches to Quality Management Quality Inspection The easiest approach to quality Based on finding defects in a product or service before it reaches the customers by introducing an inspection stage or stages. Some specification should be identified about the product or service. The inspection will be done by an employeed staff for this purpose (the chef). The emphasis is on putting things right rather than on identifying the cause of the problem and dealing with it at source.  Quality Control The quality control approach still centers on inspection but recognizes the need for a detailed specification and that quality checks should be made throughout the production process. Using sophisticated inspection methods at appropriate points in the production process, the approach is more likely to find errors and will correct them earlier. The emphasis is still on a find and fix mentality. Quality control will not improve product or service quality, it will only highlight when it has gone wrong. The focus has switched for the staff on to finding others to blame for the defects to avoid the ‘ disciplinary ’ action taken against those who make mistakes. Quality Control Responsibility for quality is in the hands of a separate quality control department and individual inspectors. The main costs are concerned with re-work and waste. With a starting point of detailed product specifications and itemized costings, the focus is on the quality of the product, and improvement in quality is achieved by increasing inspection to catch more deviations from the specification. Mainly based on the provision of detailed specifications, such as standard recipes, and makes good use of checklists of inspection points as in housekeeping.  Quality Assurance Quality assurance recognizes the inefficiencies of waiting for mistakes to happen and strives to design quality into the process so that things cannot go wrong or if they do they are identified and corrected as they happen. Lasting and continuous improvement in quality can best be achieved through planning and preventing problems from arising at the source. Moving the emphasis from inspection to prevention is helped by the introduction of a number of quality assurance tools. The approach is also likely to include a comprehensive quality system, perhaps based on the ISO 9000 series. Effective quality assurance must involve the development of a new operating philosophy and approach; one that is proactive rather than reactive, that includes involving employees in the process from across normal departmental barriers.  Quality Assurance The responsibility for quality may be given to a quality assurance department but it is also vested in line management who may even involve some employees. The emphasis here is on producing the specified quality at the specified cost. By concentrating on prevention, these costs will increase but the costs involved in making errors – the failure costs – will be reduced.  Total Quality Management (TQM) The focus on the customer and the scale and nature of internal and external involvement are the main differences between the quality assurance and TQM approaches. In any TQM approach, the driving force is the focus on the satisfaction of customer needs. The whole system must be directed at customer satisfaction and anything that could get in the way of delivering this satisfaction must be removed. This involves the whole organization, including suppliers, looking for ways to improve continually the products or services delivered. TQM places the emphasis on the people in the organization and their roles, through a broadening of their outlook and skills, through encouragement of creativity, through training and empowerment, in measuring their performance and finding ways to improve it. The emphasis is on a management-led move towards teamwork and participation. Total Quality Management (TQM) There is an inverse relationship between costs and quality – as quality increases the cost of quality comes down. However, cost is not really at issue. If there is a choice between cost and quality then quality will always win. By understanding the customers and the commitment of top management, the quality management structure is established leading to a change in culture where continuous customer-driven quality improvement is automatic. TQM: https://www.youtube.com/watch?v=renlXcpK9sk Six Sigma Six Sigma is a data-driven methodology used to improve business processes by reducing defects and variations. It was developed by Motorola in the 1980s and has since been adopted by many organizations worldwide. Six Sigma is a rigorous approach based on the collection of operating data that can improve processes by reducing their variability and eliminating defects from the product or service. It is firmly based on the principles of quality control, quality assurance, and TQM to drive quality improvement through an operation. For example, it could help a pizza delivery business to reduce the variation in its delivery times to the industry standard of 30 minutes and maintain high levels of customer satisfaction.  Six Sigma is called so because it refers to a statistical term that measures how far a given process deviates from perfection. In statistics, Sigma (σ) is used to represent the standard deviation, which is a measure of variability or dispersion. The term "Six Sigma" signifies a level of quality that strives for near-perfection, with only 3.4 defects per million opportunities. This level of quality is achieved by reducing process variations and improving efficiency. The "Six" in Six Sigma refers to the six standard deviations that are used to measure and control the process variations. Therefore, Six Sigma methodology aims to reduce defects, improve customer satisfaction, and enhance overall business performance by implementing a disciplined and data-driven approach to process improvement Six Sigma The goal of Six Sigma is to achieve near-perfect quality in products or services by identifying and eliminating errors, defects, and variations in processes. The name "Six Sigma" refers to a statistical term that measures how far a process deviates from perfection. The goal is to achieve a process capability of 6 standard deviations within the mean, which means that only 3.4 defects per million opportunities are allowed. Six Sigma follows a structured approach called DMAIC (Define, Measure, Analyze, Improve, Control) to identify and solve problems. This approach involves defining the problem, measuring the current process performance, analyzing the data to identify the root causes of defects, implementing improvements, and then controlling the process to sustain the improvements. Six Sigma It involves gathering data, analyzing it, and making data-driven decisions to improve processes and reduce defects. The methodology also emphasizes the importance of involving employees at all levels of the organization in the improvement process. By implementing Six Sigma, organizations aim to reduce variation, improve customer satisfaction, increase efficiency, and ultimately achieve higher profitability. It is widely used in industries such as manufacturing, healthcare, finance, and telecommunications. Key features of Six Sigma 1. Six Sigma as a statistical measure : Sigma stands for standard deviation, a statistical measure of the variation in a set of normally distributed data. It measures how many times your processes are outside the control limit you set, based on the number of standard deviations from the mean. In order to achieve Six Sigma you have to get things right 99.9997% of the time. You can only have 3or 4 errors in a million operations. Six Sigma https://www.youtube.com/watch?v=4EDYfSl-fmc Lean Six Sigma https://www.youtube.com/watch?v=s2HCrhNVfak Key features of Six Sigma 2. Six Sigma as a target : The principal aim is to give everyone in the organization a target for the number of defects or errors that can creep into the operation. If you serve 100 meals a day over a year and have a success level of four sigma (99.38%) you would still have served almost 250 ‘ bad ’ meals and had a significant number of dissatisfied customers. By reducing the number of defects, you reduce the associated failure costs and encourage a satisfied and loyal customer base. Six Sigma allows an organization to set a target to achieve and monitor its performance towards reaching this goal. Key features of Six Sigma 3. Six Sigma as a management approach: primarily a way of focusing management and employee attention on important issues. At Starwood Hotels which adopted the approach in 2001, managers are held accountable for key performance measures including customer satisfaction, key process performance, balanced scorecard measures, profit and loss, and employee attitude. These measures are reviewed on a regular basis and when the measures do not meet the standard then a Six Sigma team will be charged to investigate and report. These solutions can then be shared with other hotels across the group, so sharing good practice. It provides a way of focusing management attention on improvement and getting the buy-in of employees to identify ways of making the improvement necessary. Examples of Quality Management in Practice The Hospitaliy Assured Scheme Café Spice Namaste Read 391-397 (book chapter Managing Quality in food and beverage operations in Food and Beverage Management) Read about other Quality Standards and Systems e.g., The international Standards (e.g., ISO 9000, ISO22000) This standard is based on a number of quality management principles including 1. A strong customer focus, 2. The motivation and implication of top management, 3. The process approach and 4. Continual improvement Extra points Tools for Quality control A. Benchmarking, B. Cause analysis, C. Process analysis, D. Data collection and analysis, E. Project planning. These tools assist in identifying problems and guiding decisions on changes that might be needed. A. Benchmarking Comparison against best performance in the field. Such comparisons assist managers in identifying areas on which to focus improvement efforts. Examples: The Association for Healthcare Foodservice offers its members BENCHMARKING EXPRESS , a financial and operational indicator comparison tool. National Association of College & University Food Services does an Operating Performance Benchmark Survey each year. Bright et al. (2009) in their survey of institutional foodservice (schools, hospitals, correctional facilities) directors reported that about half (56%) used external benchmarking. B. Cause Analysis 1. Cause and effect diagram (also termed Ishikawa or fishbone diagrams) Illustration of factors that may influence or cause a given outcome. 2. Root cause analysis Analysis focusing on identification of the root cause of a given problem. A common technique used to get to the root cause is asking a series of “why” questions. For example, assume a manager notices that the thickness of the roast beef being served to customers varies. The initial cause of the problem might appear to be an employee who is not following directions but exploring further might disclose a different root cause. C. Process Analysis Flowchart: Graphical representation of steps in a process. It details all of the elements in a process and the sequence in which these elements occur. Example of a flowchart of the meal cart movement process in a hospital using both human power and automated guided vehicles for meal cart delivery and return. Example: the employees not follow the recipe instructions hence each one cook the meal differently D. Data Collection and Analysis Check sheets are a tool for collecting data about observations. The tool is designed by the user specific to the situation. Example: A check sheet might be used by an observer to record frequency of various reasons for why a patient tray assembly process might stop while trays are being assembled. The most frequent observation would help identify what a manager might want to work to correct. Example, days with long waiting time or lower satisfactions levels  E. Project Planning 1. The plan-do-check-act (PDCA) cycle is a model for coordinating process improvement efforts consisting of four equal quadrants. The Hospital Corporation of America detailed this procedure for healthcare organizations and termed it FOCUS-PDCA® The acronym FOCUS outlined the process to use for improving operations: F Find a process to improve O Organize a team that knows the process C Clarify current knowledge of the process U Understand causes of process variation S Select the process improvement