QSM Lesson 1.pdf

Quality Management: An Introduction Quality Service Management for Tourism and Hospitality HOW IS CUSTOMER SATISFACTION ACHIEVED? Industry Two Dimensions: QUALITY CONCEPTS...

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 Diner more complex, the reliability requirements for suppliers of 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 INPUT ------- PROCESS ------- OUTPUT currently receiving? Process level in the world. He is best known for his theories of management. What products and services are most important to the - Deming was the author of Quality Productivity and external customer? Competitive Position, Out of the Crisis (1982–1986), What processes produce those products and services? and The New Economics for Industry, Government, What are the key inputs those products and services? Education (1993) Which processes have most significant effects on the - Deming is best known in the United States for his 14 organization’s performance standards? Points (Out of the Crisis, by W. Edwards Deming, preface) and his system of thought he called the ADDITIONAL VIEWS OF QUALITY IN SERVICES "System of Profound Knowledge". The system Technical Quality vs Functional Quality includes four components or "lenses" through which to view the world simultaneously: Technical Q. – the core elements of the good and service Functional Q. – customer perception of how good functions or the Appreciating a system service is delivered. Understanding variation Psychology Epistemology, the theory of knowledge Expectation and Perceptions 3. Joseph M. Juran - Customer’s prior expectations (generalized and - Dr. Joseph M. Juran, renowned as the Architect of specific service experiences) and their perception of Quality, established the Juran Institute with a service performance affect their satisfaction with a mission: to empower organizations in crafting high- service. quality products and services that benefit society as a whole. Throughout his career he was driven by the Satisfaction = (Perception of Performance) – desire to solve business problems and pass his (Expectation) experience, insights and teachings on to others. - He is known as the "The Architect of Quality" THE QUALITY GURUS - Dr. Juran founded the Juran Institute – now simply 1. Walter A. Shewhart called ‘Juran’ – in 1979. - Walter Andrew Shewhart (pronounced like "shoe- - Dr. Juran remained active in the field of quality heart"; March 18, 1891 – March 11, 1967) was management well into his 80s consulting for top-tier an American physicist, engineer and statistician. He organizations worldwide, including the Armed is sometimes also known as the grandfather of Forces, Rolls-Royce, Toyota, Motorola, Corning to statistical quality control and related to the Shewhart name a few. cycle. His honours included: 4. Philip Crosby - Founding member, fellow and president of - Philip Crosby (Philip Bayard Crosby; June 18, 1926 the Institute of Mathematical Statistics; – August 18, 2001) was a businessman and author - Founding member, first honorary member and and is recognized as an influential quality guru. He is first Shewhart Medalist of the American best known for the quality management Society for Quality; concepts Quality is Free, Zero Defects, and the - Fellow and President of the American Four Absolutes of Quality. He additionally wrote Statistical Association; - Fellow of the International Statistical Institute; several books such as ‘Quality is Free: The Art of - Honorary fellow of the Royal Statistical Making Quality Certain’ and ‘Quality Without Tears: Society; The Art of Hassle-Free Management.’ This article - Holley medal of the American Society of covers his biography, quotes and publications. Mechanical Engineers; - Honorary Doctor of Science, Indian Statistical 5. Genichi Taguchi Institute, Calcutta. - Genichi Taguchi (田口 玄一, Taguchi Gen'ichi, Works January 1, 1924 – June 2, 2012) was 1917: A Study of the Accelerated Motion of an engineer and statistician. From the 1950s on, Small Drops through a Viscous Medium, Ph.D. Taguchi developed a methodology for dissertation via Hathi Trust applying statistics to improve the quality of manufactured goods. 1931: The Economic Control of Manufactured - Taguchi has made a very influential contribution to Product, D. Van Nostrand Company via Internet Archive industrial statistics. Key elements of his quality philosophy include the following: 1939: (with W. Edwards Deming) Statistical Taguchi loss function, used to measure Method from the viewpoint of Quality Control, The financial loss to society resulting from poor Graduate School, U. S. Department of Agriculture via quality; Internet Archive The philosophy of off-line quality control, designing products and processes so that 2. W. Edwards Deming they are insensitive ("robust") to parameters - William Edwards Deming (October 14, 1900 – outside the design engineer's control. December 20, 1993) was an American business Innovations in the statistical design of experiments, notably the use of an outer theorist, composer, economist, industrial engineer, array for factors that are uncontrollable in management consultant, statistician, and writer. real life, but are systematically varied in the Educated initially as an electrical engineer and later experiment. specializing in mathematical physics, he helped develop the sampling techniques still used by the United States Census Bureau and the Bureau of Crosby Deming Juran Labor Statistics. Definition Conforma A predictable Fitness for - He is also known as the father of the quality of Quality nce of degree of use. specificati uniformity and movement and was hugely influential in post-WWII ons dependability at Japan, credited with revolutionizing Japan's industry low cost and and making it one of the most dominant economies 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. Vendor 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.