QSM Lesson 1 & 2.pdf

Lesson 1 INPUT ------- PROCESS ------- OUTPUT Quality Management: An Introduction Quality Service Management for Tourism and Hospitality HOW IS CUSTOMER SATISFACTION ACHIEVED?...

Lesson 1 INPUT ------- PROCESS ------- OUTPUT Quality Management: An Introduction Quality Service Management for Tourism and Hospitality HOW IS CUSTOMER SATISFACTION ACHIEVED? Industry Two Dimensions: QUALITY CONCEPTS 1. Product features WHAT IS QUALITY? 2. Freedom from deficiencies Dictionary has many definitions: “Essential PRODUCT FEATURES characteristics,” “Superior,” etc. - Refers to quality of design Some definitions that are accepted in various - Examples in manufacturing industry: Performance, organizations” Reliability, Durability, Ease of Use, Aesthetics, - “Quality is customer satisfaction” etc., - “Quality is Fitness for Use.” - Examples in service industry: Accuracy, WHAT IS TOTAL QUALITY MANAGEMENT? Timeliness, Friendliness and courtesy, Knowledge of server etc. A comprehensive, organization-wide effort to improve the quality of products and services, applicable to FREEDOM FROM DEFICIENCIES organizations. - Refers to quality of conformance Other ways to practice QSM: - Higher conformance means fewer complaints and increased customer satisfaction. Wearing proper uniform/PPE for Hygiene & Sanitation Daily rally/briefing WHY QUALITY? Presence of the management/manager Reasons for quality becoming a cardinal priority for most WHAT IS A CUSTOMER? organizations: Anyone who is impacted by the product or process 1. COMPETITION – Today’s market demand high quality delivered by the organization. products at low cost. Having ‘high quality’ reputation is not enough! Internal cost of maintaining the reputation should 5 umbrellas of Hospitality Industry be less. Ex: UBER 1. Travel and Tourism 2. Leisure and Recreation 2. CHANGING CUSTOMER – The new customer is not only 3. Food and Beverage commanding priority based on volume but is more 4. Lodging and Accommodation demanding about the “quality system” 5. Events Management (MICE) Ex: Jollibee Advertisement with Celebrities/Idols to Other terms for customers: introduce their product to new customers. Passenger 3. CHANGING PRODUCT MIX – The shift from low volume, Member high price to high volume, low price has resulted in a need Partner to reduce the internal cost of poor quality. Vacationer Ex: Mix ‘N Match of McDo & Jollibee Guest Client 4. PRODUCT COMPLEXITY – As systems have become more complex, the reliability requirements for suppliers of Diner components have become more stringent. Patron 5. HIGHER LEVELS OF CUSTOMER SATISFACTION – Gamer Higher customers expectations are getting spawned by Gambler increasing competition. Traveler Shopper NOTE: Buyer Relatively simpler approaches to quality viz, product inspection for User quality control and incorporation of internal cost of poor quality into External Customer – The end user as well as intermediate the selling price, might not work for today’s complex market processors. Other external customers may not be purchasers environment. but may have some connection with the product. QUALITY PERSPECTIVES Internal Customer – Other divisions of the company that Everyone defines Quality based on their own perspective of it. receive the processed product. Typical response about the definition of quality would include: Note: 1. Perfection “Customers are always right but not all the time.” 2. Consistency 3. Eliminating waste “Internal or External Customer should be treated equally.” 4. Speed of delivery 5. Compliance with policies and procedures “WE created MEMORIES for our guests” 6. Doing it right the first time 7. Delighting or pleasing customers 8. Total customer satisfaction and service WHAT IS PRODUCT? QUALITY LEVELS - The output of the process carried out by the organization. It may be good (e.g., automobiles, Organizational Level missile). Software (e.g. computer code, a report) or device (e.g. banking insurance). Which products and services meet your expectations?  Which products and services you need that you are not and making it one of the most dominant economies currently receiving? in the world. He is best known for his theories of management. Process level - Deming was the author of Quality Productivity and Competitive Position, Out of the Crisis (1982–1986), What products and services are most important to the and The New Economics for Industry, Government, external customer? Education (1993) What processes produce those products and services? - Deming is best known in the United States for his 14 What are the key inputs those products and services? Points (Out of the Crisis, by W. Edwards Deming, Which processes have most significant effects on the preface) and his system of thought he called the organization’s performance standards? "System of Profound Knowledge". The system ADDITIONAL VIEWS OF QUALITY IN SERVICES includes four components or "lenses" through which to view the world simultaneously: Technical Quality vs Functional Quality Appreciating a system Technical Q. – the core elements of the good and service Understanding variation Functional Q. – customer perception of how good functions or the Psychology service is delivered. Epistemology, the theory of knowledge 3. Joseph M. Juran Expectation and Perceptions - Dr. Joseph M. Juran, renowned as the Architect of Quality, established the Juran Institute with a - Customer’s prior expectations (generalized and mission: to empower organizations in crafting high- specific service experiences) and their perception of quality products and services that benefit society as service performance affect their satisfaction with a a whole. Throughout his career he was driven by the service. desire to solve business problems and pass his experience, insights and teachings on to others. Satisfaction = (Perception of Performance) – - He is known as the "The Architect of Quality" (Expectation) - Dr. Juran founded the Juran Institute – now simply called ‘Juran’ – in 1979. THE QUALITY GURUS - Dr. Juran remained active in the field of quality 1. Walter A. Shewhart management well into his 80s consulting for top-tier - Walter Andrew Shewhart (pronounced like "shoe- organizations worldwide, including the Armed heart"; March 18, 1891 – March 11, 1967) was Forces, Rolls-Royce, Toyota, Motorola, Corning to an American physicist, engineer and statistician. He name a few. is sometimes also known as the grandfather of statistical quality control and related to the Shewhart 4. Philip Crosby cycle. - Philip Crosby (Philip Bayard Crosby; June 18, 1926 His honours included: – August 18, 2001) was a businessman and author - Founding member, fellow and president of and is recognized as an influential quality guru. He is the Institute of Mathematical Statistics; best known for the quality management - Founding member, first honorary member and concepts Quality is Free, Zero Defects, and the first Shewhart Medalist of the American Four Absolutes of Quality. He additionally wrote Society for Quality; - Fellow and President of the American several books such as ‘Quality is Free: The Art of Statistical Association; Making Quality Certain’ and ‘Quality Without Tears: - Fellow of the International Statistical Institute; The Art of Hassle-Free Management.’ This article - Honorary fellow of the Royal Statistical covers his biography, quotes and publications. Society; - Holley medal of the American Society of 5. Genichi Taguchi Mechanical Engineers; - Honorary Doctor of Science, Indian Statistical Genichi Taguchi (田口 玄一, Taguchi Gen'ichi, Institute, Calcutta. January 1, 1924 – June 2, 2012) was Works an engineer and statistician. From the 1950s on, Taguchi developed a methodology for 1917: A Study of the Accelerated Motion of applying statistics to improve the quality of Small Drops through a Viscous Medium, Ph.D. manufactured goods. dissertation via Hathi Trust - Taguchi has made a very influential contribution to industrial statistics. Key elements of his quality 1931: The Economic Control of Manufactured philosophy include the following: Product, D. Van Nostrand Company via Internet Archive Taguchi loss function, used to measure financial loss to society resulting from poor 1939: (with W. Edwards Deming) Statistical quality; Method from the viewpoint of Quality Control, The The philosophy of off-line quality control, Graduate School, U. S. Department of Agriculture via designing products and processes so that Internet Archive they are insensitive ("robust") to parameters outside the design engineer's control. 2. W. Edwards Deming Innovations in the statistical design of - William Edwards Deming (October 14, 1900 – experiments, notably the use of an outer December 20, 1993) was an American business array for factors that are uncontrollable in real life, but are systematically varied in the theorist, composer, economist, industrial engineer, experiment. management consultant, statistician, and writer. Educated initially as an electrical engineer and later specializing in mathematical physics, he helped Crosby Deming Juran develop the sampling techniques still used by Definition Conforma A predictable Fitness for the United States Census Bureau and the Bureau of of Quality nce of degree of use. Labor Statistics. specificati uniformity and - He is also known as the father of the quality ons dependability at low cost and movement and was hugely influential in post-WWII Japan, credited with revolutionizing Japan's industry  suited to the market. Degree of Responsi Responsible for Less than senior ble for 85% of quality 20% of manageme quality problems. quality nt problems are responsibil due to ity workers. Performan Zero Quality has many Avoid ce defects “scales”: use campaign to standard/m statistics to do perfect otivation measure work. performance in all areas; critical of zero defects. General Preventio Reduce variability General approach n, not by continuous managemen inspection improvement: t approach to cease mass quality, inspection especially human elements. Structure 14 steps 14 points for 10 steps to to quality management quality improvem improvement ent Statistical Rejects Statistical Recommend process statisticall methods of quality s SPC but control y control must be warms that it (SPC) acceptabl used can lead to e levels of tool-driven quality approach. Improveme A process, Continuous to Project-by- nt basis not a reduce variation: project team program; eliminate goals approach: improvem without methods. set goals ent goals Teamwork Quality Employee Team and improvem participation in quality circle ent teams” decision making; approach. quality break down councils barriers between departments Cost of Cost of No optimum; Quality is not quality nonconfor continuous free; there is mance; improvement an optimum. quality is free Purchasing State Inspection too Problems and goods requireme late; allows are complex; received nts” defects to enter carry out supplier is system through formal extension AQLs; statistical surveys. of evidence and business; control charts most required. faults due to purchaser s themselve s. tVendor Yes, and No, critical of most Yes, but help rating buyers’ systems. supplier quality improve. audits useless. Single Yes No, can sourcing of neglect to supply sharpen competitive edge.  Lesson 2 Guestology: The Basics of WOW! Hospitality Industry - Guests (term to used) Walt Disney was the first to use the word “guest” THE HOSPITALITY INDUSTRY - The hospitality industry is made up of organizations that offer guests, courteous, professional food, drink and lodging service, alone or in combination. - Even more challenging for those in the hospitality organizations is the simple reality of service quality and service value are defined not by the managers, auditors, or rating organizations. - The one that defines quality will always be our guests or customers. GUEST EXPERIENCE - Sum total of the experience that the guest has with the service provided on a given occasion or set of occasions. MOMENT OF TRUTH - Any key or crucial moment of period during the service encounter, a make or break moment; subsequently expanded by other to include any significant or memorable interaction. GUESTOLOGY COMPARING GOODS AND SERVICES - The study of guest and their behavior – their wants, needs, and expectations – with the aim of aligning GOODS SERVICES RESULTING IMPLICATIONS the organization’s Tangible Intangible Services cannot o Strategy be inventoried. o Staff Services cannot o Systems be easily patented. so as to provide outstanding service to guests Services cannot be readily GUESTOLOGY displayed or communicated. Service Standards Pricing is Cast difficult. Setting Process Standardized Heterogeneous Service delivery Integration and customer Service Theme satisfaction depend on THE GUEST EXPERIENCE employee and customer Formula for guest experience will be the sum of the actions. following: Service quality depends on o Service Product many o Service Setting uncontrollable factors. o Service Delivery There is no sure knowledge GUESTOLOGIST that the service - Seeks to understand and plan for the expectations of delivered an organization’s target customers before they even matches what enter the service setting, so that everything is ready was planned and promoted. for each guest to have a successful and enjoyable Production Simultaneous Customers experience. separate from production and participate in consumption consumption and affect the SERVICE transaction. - Intangible part of a transaction relationship that Customers creates value between a provider organization and affect each its customer, client, or guests. other. - Services can be provided directly to the customer, or Employees affect the it can be done for the customer. service - Services can be provided by a person or via outcome. technology. Decentralization may be TANGIBLE PART = PRODUCTS essential. Mass INTANGIBLE PART = SERVICES production is difficult. Nonperishable Perishable It is difficult to synchronize  supply and In such situations, ensuring the quality of the service demand with experience is even more crucial because of the services. circumstances to the need for services. Services cannot A service delivery system consists of: be returned or resold. An inanimate technology part (organization and information systems and process techniques) People part (most importantly, the frontline server who COMPOTENTS OF SERVICE delivers, or presents the service, or co-produces it with the guest) I- NTAGIBILITY COMPONENTS OF THE GUEST EXPERIENCE H-ETEROGENETY 1. Service Product – usually the reason for being is I-NSEPERABILITY embodied in the name of the business. P-ERISHABILITY Ex: - Starbucks WHAT IS SERVICE? The Old View - Burgoo - Shangri-La - Service is a technical after-sale function that is 2. Service Setting – environment where the experience provided by the service department. takes place. 3. Service Delivery System – the technology and people SERVING INTERNAL CUSTOMER part. INTERNAL CUSTOMER – persons or units within the organization Ex: that depends on and serve each other. - Jollibee & McDo Kiosks “Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest customer.” MEETING INCREASED COMPETITION - If they don’t provide the experience their guests expect someone else will. – SOUTHWEST AIRLINES SERVICE PRODUCT The entire bundle of tangible and intangibles provided by the hospitality organization to guests during a service experience; same as Service Package. A service product does not refer specifically to the tangible items that may accompany the transaction, though it can include them. Both the organization and the guest define it, and the definitions may not be the same. SERVICE INDUSTRIES - “There are no such things as service industries. There are only industries whose service components are greater or less than those of other industries. Everybody is in service.” – Theodore Levitt GOODS TO SERVICE TO EXPERIENCE - More and more, today’s consumers want their goods and services packaged as part of a memorable experience that has an emotional impact. - “If you do not create a memory, then you have not offered a distinctive experience.” - DISTINCYIVE EXPERIENCES, B.Joseph Pine II & James H. Gilmore (Authors, The Experience Economy) UNDERSTANDING THE GUEST Each guest is unique. VIP – Very Individual People Understanding the guest includes The traditional demographic breakdown of age, race, gender, and guests’ home locations. Psychographic breakdowns of how they feel, what their attitudes, beliefs and values are. Capabilities (their KSA – Knowledge, Skills, Attitude) to co-produced the experience Meeting the expectations of a customer who arrives needing but not really wanting the service and angry at the service provider, perhaps even at the world itself, is difficult.