Quality Service Management in Tourism and Hospitality PDF

# Quality Service Management in Tourism and Hospitality ## Chapter 1: Introduction to Quality ### Objectives: At the end of the unit, students will be able to: * Define quality, its perspectives, importance, and levels * Recognize the Historical Philosophies of Quality * Differentiate some of th...

# Quality Service Management in Tourism and Hospitality ## Chapter 1: Introduction to Quality ### Objectives: At the end of the unit, students will be able to: * Define quality, its perspectives, importance, and levels * Recognize the Historical Philosophies of Quality * Differentiate some of the leaders in Quality Revolution * Analyze the contemporary influences on Quality * Deliberate on dimensions of Total Quality Management * Discuss Quality in Services and components/models _"Quality is not an act; it is a habit"_ -Aristotle ## Quality Service Management in Tourism and Hospitality ### Quality Perspectives: Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include: 1. Perfection 2. Consistency 3. Eliminating waste 4. Speed of delivery 5. Compliance with policies and procedures 6. Doing it right the first time 7. Delighting or pleasing customers 8. Total customer satisfaction and service ## Formal Definitions of Quality: * **Transcendent Perspective:** excellence * **Product Perspective:** quantities of product attributes * **User Perspective:** fitness for intended use * **Value Perspective:** quality vs. price * **Manufacturing Perspective:** conformance to specifications * **Customer Perspective:** meeting or exceeding customer expectations ### Importance of Quality * Quality is uniquely positioned to accelerate organizational growth through better execution and alignment * Quality provides the voice of the customer critical to developing innovative products and services. * Quality can provide an organization with a competitive edge *"No quality, no sales. No sales, no profit. No profit, no jobs."* ### Why Quality? Reasons for quality becoming a cardinal priority for most organizations: * **Competition** - Today's market demands high quality products at low cost. Having a 'high quality reputation is not enough! Internal cost of maintaining the reputation should be less. * **Changing customer -** The new customer is not only commanding priority based on volume but is more demanding about the "quality system." * **Changing product mix -** The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality. ## Quality Levels At the organizational level, we need to ask the following questions: * Which products and services meet your expectations? * Which products and services you need that you are not currently receiving? At the process level, we need to ask: * What products and services are most important to the external customer? * What processes produce those products and services? * What are the key inputs to those processes? * Which processes have the most significant effects on the organization's performance standards? ## Lesson 2: Historical Philosophies of Quality | Years | Philosophy | |---|---| | 1920s | Scientific management principles | | 1930s | Shewhart develops SQC methods| | 1946 | ASQ (then ASQC) formed| | 1950s | TQM and quality concepts developed| | 1968 | Quality management systems | | Today | Quality standards and QMS | ### History of Total Quality Management (TQM) * **1920s**: Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry. * **1930s**: Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose as workers were deprived of a voice in the conditions and functions of their work. The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by participation. * **1930s**: Walter Shewhart developed the methods for statistical analysis and control of quality. ## Three of the Quality Gurus Compared | | Guru | Definition of quality | Degree of senior management responsibility | Performance standard/motivation | General approach | Structure | |---|---|---|---|---|---| | Crosby | Conformance to specifications | Responsible for quality | Zero defects | Prevention, not inspection | 14 steps to quality improvement | | Deming | A predictable degree of uniformity and dependability at low cost and suited to the market | Responsible for 86% of quality problems | Quality has many "scales": use statistics to measure performance in all areas; critical of zero defects | Reduce variability by continuous improvement. Cease mass inspection | 14 points for management | | Juran | Fitness for use | Less than 20% of quality problems are due to workers | Avoid campaigns to do perfect work | General management approach to quality, especially human elements.| 10 steps to quality improvement | ## Leaders in Quality Revolution * **Walter A. Shewhart** * Statistician at Bell Laboratories * Developed statistical control process methods to distinguish between random and nonrandom variation in industrial processes to keep processes under control. * Developed the “plan-do-check-act” (PDCA) cycle that emphasizes the need for continuous improvement. * Strongly influenced Deming and Juran. * **W. Edwards Deming** * The Deming philosophy focuses on continual improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service processes, driven by the leadership of top management. * He has the most influence on quality management compared to the other leaders in quality revolution. * Demonstrated that quality products are less costly than poor quality products. * Identified 14 points critical for improving quality. * **The Deming Prize** * Highest award for industrial excellence in Japan. * **Joseph M. Juran** * Emphasized the importance of producing quality products through an approach focused on quality planning, control, and improvement. * Defined product quality as "fitness for use" as viewed by the customer in: * Quality of design * Quality of conformance * Availability * Safety * Field use * Categorized the cost of quality as: * Cost of prevention * Cost of detection/appraisal * Cost of failure * **Philip B. Crosby** * Preached that "quality is free." * Believed that an organization can reduce overall costs by improving the overall quality of its processes. * **Absolute's of Management** * Quality means conformance to requirements, not elegance. * There is no such thing as a quality problem. * There is no such thing as economics of quality: it is always cheaper to do the job right the first time. * The only performance measurement is the cost of quality: the cost of non-conformance. * **Crosby Philosophy:** * **Basic Elements of Improvement** * Determination (commitment by the top management) * Education (of the employees towards Zero Defects (ZD)) * Implementation (of the organizational processes towards ZD) * **Armand V. Feigenbaum** * Proposed the concept of "total quality control," making quality everyone's responsibility. * **Three Steps to Quality** * Quality Leadership, with a strong focus on planning * Modern Quality Technology, involving the entire work force * Organizational Commitment, supported by continuous training and motivation * **Kaoru Ishikawa** * Developed problem-solving tools such as the cause-and-effect (fishbone) diagram. * Called the father of quality circles * Instrumental in developing Japanese quality strategy * Influenced participative approaches involving all workers * Advocated the use of simple visual tools and statistical techniques ## Lesson 3: Contemporary Influences on Quality * **Global Responsibility:** A hospitality and tourism organization must be aware of its local decisions on a global perspective. As they say, "act local; think global". Becoming sustainable is one way of promoting global responsibility in today's growing demands for goods and services but rather declining supply. Organizations must utilize finite resources accordingly. Responsible efforts maintain a good reputation. * **Consumer Awareness:** Technology advancements pave way for ease of information, with the presence of various social media sites such as Facebook, Twitter, Instagram among others, purchase decisions of consumers have been affected. With this, tourism and hospitality organizations must be quick to determine the needs, wants and demands of consumers as well as feedbacks and promotions. * **Globalization:** The 21st century opened different opportunities to organizations not just locally but the whole world. As such, today's firms have to contend with a growing number of competitors and sources. * **Increasing Rate of Change:** Today's world is generated by technology, e-commerce and internet. Tourism and hospitality organizations, must be adept to these rapid changes. The current pandemic situation brought about great impacts on the operations, such firms must be able to respond quickly. * **Workforce of the Future:** Changes in manpower and labor are becoming widely affected by the shift to technology and internet. Organizations must take initiative to improve employee skills which cannot be overtaken by technology. * **Aging Population:** As people live longer, the needs and demands of these customers differ as they age. Organizations must take into consideration both on employee and guest aspects. * **Twenty-first Century Quality:** Quality is moving beyond the organization's wall to encompass quality of the overall guest experience not just of a certain product or service. * **Innovation:** Innovation is the fuel of growth in today's changing world. ## Lesson 4: Quality in Services Service is defined as "any primary or complementary activity that does not directly produce a physical product - that is, the non-goods part of the transaction between buyer (customer) and seller (provider). ### Components of Service Quality 1. **People:** "If we take care of our people, they will take care of our customers." 2. **Technology:** * Computers and information technology * E-commerce ### Principles, Practices and Techniques of Quality Management * **Principles:** - as the foundation of the philosophy * **Practices:** - activities by which principles are implemented. * **Techniques:** - tools and approaches to make practices effective. ### Core Quality Management Principles * Customer Focus * Teamwork * Continuous Improvement ## Dimensions of Quality Defined | Quality in Goods | Quality in Services | |---|---| | Performance | Reliability | | Features | Tangibles | | Reliability | Responsiveness | | Durability | Assurance | | Conformance | Empathy | | Serviceability | | | Aesthetics | | | Perceived quality | |