HOQ Training Practice Tool 4(Team Exercise)

Outcomes/Objectives:

● To enhance team building in all stages from forming, norming, storming, and performing.
● To apply various tools of quality management and how these are integrated into the House of
Quality framework.
● To understand the concepts of the "Voice of the Customer" (VOC), Critical to Quality (CTQ),
Benchmarking, among others.
● To learn how to translate the VOC into priorities of technical requirements, resulting into
priority improvements an organization can pursue.
● To train students in the use of the HOQ framework and related template in preparation for the
Quality Improvement Plan (QIP) undertaking.

Task:

Suppose that you are developing a small pizza restaurant with a dining area and local
delivery. Develop a list of customer requirements and technical requirements to
complete a House of Quality. Take into consideration what service standards might
such an operation have.

Members:
A. Completed House of Quality
B. Concise explan ation on the following:

● Customer Requirements (Wants) and the importance rankings.

The attributes given for customer needs were based on what a consumer would
desire from a pizza business. For the importance rankings, food quality was ranked first
with a weight of 5.0 because of how this factor affects the overall customer's experience
in terms of what sets the pizza business apart from others. Also, the group identifies this
as the main factor that customers look for. If the restaurant provides good quality of
food, the overall restaurant experience which contributes to customer satisfaction will
also be good and more customers would return to the restaurant. Next in the rankings
are fast delivery, affordability, and customer service with a weight of 4.0. For fast
delivery, as the time of the customers is limited and valuable, offering fast delivery
allows the restaurant to show that the customers’ time is being valued and given
importance. Moreover, fast delivery allows the restaurant to preserve the quality of food
and deliver the pizzas while it is still fresh and hot. As for affordability, this is important
because it helps attract more customers and capture a wider market. Furthermore, the
pizza must be at an affordable price level to entice them to give it a try and receive more
return customers. Meanwhile, for good customer service, this is important because it
increases customer satisfaction and loyalty as well as providing a good brand image
and reputation which correlates to the success of the restaurant. Especially for a service
business such as a pizza restaurant, good customer service is one of the main factors
as to why customers choose your restaurant over others. Third in the importance
rankings are clean dining area, good food packaging, and nutritious food with a weight
of 3.0. For these three factors, they are not as important compared to the quality of food
itself; however, a clean dining area is important because it shows that you care and
want your customers to have a good time while they are dining. Also, this ensures that
the environment and experience of the customers are given importance. For the good
food packaging, this does not only add appeal but also protects the food against
bacteria and keeps the food warm and preserves it. As for food nutrition, some
customers are conscious about the food they eat, especially foods like pizza. Providing
nutritious food to the customers helps the restaurant entice and capture health
conscious customers and as well as provide alternatives for them as pizzas are
generally viewed as unhealthy food. Last in the importance rankings would be the good
variety of food selection with a score of 2.0. This is important because this enables the
restaurant to cater to a wider variety of customers and as well as provide more options
for the customers to try. However, this is not as important as the other factors since for
pizza restaurants, customers are more likely to stick to their favorite or accustomed
flavor instead of trying on different flavors when ordering from a pizza place.
 ● Technical Requirements (Hows), direction of improvement, technical targets,
and level of difficulty to achieve.

The group identified several technical requirements that need to be maximized

such as price of product, dining environment, availability of ingredients, and nutritional
value. Having the right price points is an important factor when doing business. It is vital
that the business provides quality food to its customers at a price that would not render
the business unprofitable. After all, profits are still the lifeblood of any business. Hence,
the restaurant must be able to maximize its pricing strategy and generate profits while
making sure that it provides only quality products to capture its target market. Aside
from that, the dining environment must also be maximized and this means setting the
right ambience or atmosphere while the customers enjoy their food. Providing a
memorable dining experience to customers could serve as a competitive edge. Another
technical factor is the availability of ingredients. Having the right inventory is crucial in
any restaurant business to ensure that they can provide all the products on the menu.
Not being able to provide even a single item would most likely lead to customer
dissatisfaction. Nutritional content or value must also be maximized because the current
trend in the food industry is driven by more health-conscious consumers.

On the other hand, well-trained staff, cooking materials, and delivery vehicles
must be aptly provided. These factors are critical in providing quality service and
experience to customers that shall ensure business success if utilized properly and in a
manner that is cost-effective. As for the level of difficulty, it is evident that the controlled
factors range from 1 to 7 with availability of ingredients being the easiest to achieve and
the dining experience being the hardest. Daily inspection of ingredients including
inventory and quality checklists would suffice, whereas the dining environment
encapsulates a wider range of sub requirements that must be met to achieve customer
satisfaction.

● Relationships identified in the matrix diagrams between Wants and Hows and
the correlations in the roof.

For Dining Environment, it has a positive correlation with Well Trained Staff since
both play a part in the satisfaction of customers when they are dining in the pizza
restaurant. Price of Product and Availability of Ingredients has a strong positive
correlation as the price of their products will depend on the availability of ingredients
(i.e. readily available ingredients will be much cheaper and thus, reduce the cost of their
products. Availability of Ingredients also shows a positive correlation with Nutritional
Value since the restaurant’s available ingredients will determine the nutritional contents
and value of their products.
 ● Competitors identified and basis for ratings.

The competitors identified by the group are Pizza Hut, Shakey’s, Yellow Cab,
Greenwich and Domino’s Pizza. The basis for the rating given in the HOQ are from the
past experiences of the group as customers of the aforementioned pizza chains. For the
quality of food, the group gave Yellow Cab a rating of 5 because it is known for its
quality but at a price that is considered higher than the competition. In terms of fast
delivery, all got a 4 except Shakey’s despite its slogan “If it's late, it's free!”. Per the
group’s experience, branches of Shakey’s have a higher tendency to have late
deliveries due to several factors that are yet to be identified. On the other hand, both
Pizza Hut and Greenwich scored 5 in terms of affordability as their pricing is more for
average consumers like students and the general working population.

The group gave Yellow Cab a 5 for clean dining area and good customer service
because its staff appear to be more trained and effective in managing the restaurant
and dealing with customer complaints. For the variety of food selection, the group gave
Shakey’s and Greenwich a 5 as they have a wider range of offerings from pizza flavors
to pasta and dessert selection. For food packaging, Yellow Cab scored a 5 because it
has the most recognizable packaging with its iconic yellow and black colors that add
more to its identity and overall brand recognition. Lastly, in terms of nutritious value, all
got a score of 2 except for Shakey’s and Yellow Cab which scored a 3 because these
two offer healthier options for pizza. They also have soups and salads on their menu.

● Identified CTQs/ Priority Improvement/s based on HOQ results.

Based on the HOQ ratings shown above, it was determined that our pizza
restaurant would need to improve primarily in terms of the variety of food selection. With
a score of 2 in the HOQ, our restaurant must innovate and offer a wider variety of
products that would ultimately improve the quality of service and satisfaction we provide
to the consumers. Moreover, offering a wide variety of food selection can keep our
consumers interested and as well as help our restaurant contend with our competitors
or even exceed them. The group suggests improving the variety of food selection by
either introducing more pizza flavors or offering other products that complement pizza
such as soups, salads, and other side dishes. Overall, this will help our restaurant to be
more innovative, creative, and productive. Furthermore, this would also enable our
restaurant to be able to cater to a wider range of customers and gain a competitive
advantage over other pizza restaurants.