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02/13/09 Quality Management 1

 A chain of chili restaurants, based in Cincinnati,
Ohio, was founded in 1965.
 Operates in a highly competitive market against
other multilocation chili firms such as McDonald’s,
Taco Bell, Kentucky Fried Chicken, Skyline.
 According to an interview with Bashir Daoud (a
grandson of one of the founders) on August 22,
2005, the chain owns 105 restaurants. The chain's
commissary produces nearly 20,000 pounds
(9,100 kg) of food product for the restaurants per
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Mission statement
“It's not just our slogan, it's the
experience that we want our loyal,
hard working customers to expect
each and every time they dine at one
of our more than 100 locations
throughout our city”

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Direct Indirect
Restaurant customer Product suppliers
Franchisees applicants Service suppliers
Retail customers Co-packers
Retail wholesalers Brokers/Consultant
Mail-order customer Shareholders

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Supplier relationship
Selection is driven by two criteria
2. Quality.

3. Price.

Gold star partners with suppliers for

 Restaurant equipment.

 Food products.

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What they have applied
 Procedure manuals have been developed to
share similar level of information all across facilities. (i.e.
SOP, Poka-Yoke)
 Each employee is cross-trained to perform each
 Prior to opening of each restaurant, training is
 Chili production is performed at the Gold Star
 The chili must pass through a series of strict tests
before being shipped to restaurants.
 e.g. Flow meter, Bostwick Viscosity Meter, fat content
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What they have applied

 Store performance and quality are measured

quarterly through visits by corporate
 Invited suppliers to attend a seminar on the
gold Star chili total Quality philosophy and
supplier’s role in the process.
(information sharing)

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Deming’s View of a
Production System

Suppliers of
Design and
materials and
equipment Consumer
Receipt research
test A Consumers
Of B P A I
materials C Distribution
Tests of processes, machines, methods

Quality Management
Types of Processes
 Value-creation processes (Core)
 Those most important to “running the business”
 Gives the competitive advantage
 CTQ = Critical to Quality
 Support processes
 Those most important to an organization’s value
creation processes, employees, and daily
 Do not add value to product/services.
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FAC=Franchisee Advisory Council
Kano Model Satisfaction


Competitive priority

Must Be
Critical Priority

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Our suggestions

 Process simulation
is an approach to building a logical model of
a real process, and experimenting with the
model to obtain insight about the behavior of
the process or to evaluate the impact of
changes in assumptions or potential
improvements to it.

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Our suggestions

Here it is helping us to have-:

 Customer service improvement
 Cycle time reduction
 Reducing variability

process simulation is a very useful tool as

process is very much complex as it involves
direct customers' and also indirect customers
and again they have sub categories
according to organizations model.
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Key Learning‘s
Breakthrough improvements
 Results from innovative and creative thinking.
 Benchmarking:
“ measuring your performance against that of
best in class companies, determining how
best in class achieved those performance
levels and using the information as a basis
for your own company’s targets, strategies
and implementation.
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 Through benchmarking company discovers
its strength and weakness and those of
other industry leaders and learn how to
incorporate the best practices into its own
 There major types of benchmarking:
 Competitive benchmarking:
 Studying product, processes or business
performance of competitors in the same
industry to compare pricing, technical quality,
features and other quality or performance
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2. Process benchmarking:
 It centers on key work processes such as order
entry, distribution or employee training.
 To identify the most effective practices in
companies that perform similar functions, no
matter in what industry.
3. Strategic benchmarking:
 How companies compete and seeks the winning
strategies that have led to competitive advantage
and market success.

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Projects as value creation
Project life cycle management.
 Project quality initiation.

 Project quality planning.

 Project quality assurance.

 Project quality control.

 Project quality closure.

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Baldrige National Quality
 The Criteria for Performance Excellence are the foundation of the
Baldrige National Quality Program. For more than 20 years, the
Criteria have played a significant role in strengthening U.S.
competitiveness. Now in Business/Nonprofit, Education, and
Health Care versions, they are the basis for
 conducting organizational self-assessments
 making awards to recognize the achievements of organizations that
have improved performance in the critical factors that drive their
 providing feedback to applicants for the Baldrige Award
 stimulating the improvement of performance practices and
 communicating and sharing best practice information among U.S.
organizations of all types
 understanding and managing for performance excellence and for
guiding planning

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Current Status
 2005 Community Leadership Award from
the Child Wellness Community Fund
(November 10, 2005)
 2004 Ohio Restaurant Association's
Restaurant Good Neighbor Award (2004)

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