BSHM23 PERFORM WORKPLACE AND SAFETY PRACTICES

In hospitality industry, you are representing both yourself and the organization
you work for. Your personal presentation is important to the customer’s first
impression. Because of the high degree of contact with the guest. Good First
Impression is an important aspect in the front office, thus, Front Office Associate
must have the PERSONALITY to deliver an excellent service and will create a well
satisfied guest.

P leasantness - good manners and a smile are natural

assets.
E agerness - to help others, with a liking for people
and
willingness to serve them.
R espect - for other people. Courtesy cost nothing.
S ense of responsibility - a realization that what one does and says
is important.
O rderly mind - essential for methodical and accurate
work
N eatness - indicates pride in self and job
A ccuracy - in everything done is of paramount
importance
L oyalty - to both management and colleagues make
good teamwork
I ntelligence - use of common sense at all times
T act - saying and doing the right thing at the
right time
Y earning to be a good FO Associates - a love of work is essential

SEQUENCE OF FRONT OFFICE SERVICE

● RECEIVING/PROCESSING AND DOCUMENTING GUESTS’ RESERVATIONS

(RESERVATION CLERK)
● WELCOMING/GREETING THE GUEST, UNLOADING HIS LUGGAGE
(DOORMAN/BELLBOY)
● ATTENDING TO GUEST REGISTRATION (DESK CLERK)
● SETTLEMENT OF GUEST’S BILL (FRONT OFFICE CASHIER)
● ESCORTING GUEST TO HIS ROOM, CARRYING HIS LUGGAGE, EXPLAINING
ROOM FACILITIES (BELLBOY)
 ● UPDATING ROOM STATUS; PREPARING GUEST FOLIO (DESK CLERK)
● ATTENDING TO ALL SERVICE REQUEST OF GUESTS, EXTENDING
VARIOUS FORMS OF ASSISTANCE (DESK CLERK/ALL EMPLOYEES)
● UPDATING GUEST ACCOUNT, PREPARING BILLING STATEMENT;
SETTLING OF BALANCE (CASHIER)
● ASSISTING GUEST FOR CHECK OUT (BELLBOY AND HOUSEKEEPING
STAFF)
● SETTLING BILLS, GIVING CLEARANCE FOR CHECK OUT (CASHIER)
● BIDDING GOODBYE; THANKING THE GUEST FOR PATRONAGE (ALL
STAFF)

BSHM23 ROOMS SALES AND RESERVATION

FUNCTION

● determination of room rates for various types of accounts/clients

● promotion of room sales, up selling of rooms receiving and processing room
● reservations serving as center for communications, handling inquiries on hotel
facilities and services as well as room rates and arrangement
● preparing reports—room sales, occupancy, availability status, etc.
● coordinating with the Front Desk for room blockings and assignment
● handling pre-registration of guests.

TYPES OF CLIENTS

● WALK-IN GUEST – patron who comes unannounced looking for rooms.

● CORPORATE ACCOUNTS – apply for companies or institutions usually with
special credit arrangements. These accounts are usually treated with special
rates and also given priority during high occupancy.
● ASSOCIATIONS – groupings of individuals or companies for a common purpose
or goal. They usually go for lower rates since their members often pay hotel
services out of their own pockets.
● TRAVEL AGENCIES – most of the agencies have pre-arranged bookings of their
tour groups in a hotel . Many travel agencies serve as intermediary in booking
clients to the hotel in exchange of a pre arrangement fee or commission.
● GOVERNMENT INSTITUTIONS/OFFICE
● FIT (FREE INDEPENDENT TRAVELER)
● EDUCATIONAL INSTITUTIONS – SCHOOLS, TRAINING CENTERS
● LOCAL/DOMESTIC TRAVELER
 ● BALIKBAYAN

TYPES OF RESERVATION

REGULAR RESERVATION – agreement that a hotel makes to hold a room until

cut-off date and time, if the guest did not arrive by the time, the room maybe sold to
other guests.

CONFIRMED RESERVATION – applies when the terms of reservation have

been terrified. Both hotel and the reserving party agrees on the date, rates and billing
arrangement.

GUARANTEED RESERVATION – arrangement that the hotel makes to hold a

room for a guest until the guest arrives. in return, the guest assures payment for the
room using his credit card or his company account or by making a pre-payment.
unless it is cancelled, the guest will be charged for fees according to hotel policies and
procedures.
BSHM23 PRESCRIPTION OF ROOM RATES

RATE DESIGNATION

RACK RATE – highest published rate a hotel can charge for a specific room.
This varies according to the room type.

CORPORATE RATE – a special rate given to corporate accounts as an

“incentive” for their patronage. The rate may reflect 10-20% discount from the rack
rate.

VOLUME ACCOUNT RATE – this is given when there is a guaranteed number

of room nights within a specific time frame (1 week or 1 month). Companies and
associations can
negotiate for more discounts under this account.

GOVERNMENT ACCOUNTS – government officials who stay in a hotel for

official functions are usually given per diem.

SEASONAL RATE – To attract more patronage during lean season, hotels and
resorts make it a practice to offer off-season rate, which is much lower than the rack
rate during “in season”
 WEEKEND-WEEKDAY RATE – an incentive was given by way of special
weekend rates, (with special discount)

ADVANCE PURCHASE RATE – like some airlines, hotels may give incentive to
early bookings by giving special rate for advance room payments.

HALF DAY RATES – this applies to hotel rooms that are designed for short
time or half day conferences that needed sleeping facility.

INDUSTRY RATE – apply to associations and group of professionals or industry

practitioners who are offered professional courtesy of discount rates. This may
include travel agents, tour guides, employees/officials from other hotels.

PACKAGE RATE – a hotel may come out with a package rate whereby the cost
of the room, meals and other part of the package will appear to be much lower than
paying for them separately.

A. Vacation Package
B. Banquet Package
C. Meeting Package

BSHM23 BASIC PROCEDURES IN TAKING RESERVATIONS

TELEPHONE RESERVATION
● GREET THE CALLER AND ● LIFT THE RECEIVER AND SAY:
OFFER ASSISTANCE “ROOM RESERVATION, GOOD
MORNING. HOW MAY I HELP
YOU?”

● GET THE DETAILS AND WRITE ● ASK: “FOR WHAT DATE

IN THE RESERVATIONS FORM SIR/MAM?”
ALL PERTINENT DATA LIKE: “WHAT TYPE OF ROOMS
NAME OF GUEST SIR/MAM?”
TYPE OF ROOM HOW MANY DAYS, FROM
NUMBER OF DAYS OF STAY __TO __?”
ARRIVAL AND DEPARTURE HOW WOULD YOU LIKE
DATE THE BILL TO BE SETTLED
MANNER OF PAYMENT OR MR./MRS.____?
BILLING ARRANGEMENT
 CAN TRANSFER YOU TO A
● IF THE PREFERRED ROOM SUITE ROOM ONCE THERE IS
TYPE IS NOT AVAILABLE ON AN AVAILABLE SUITE.”
THE DATE MENTIONED,
INFORM THE GUEST BUT ● “MAM/SIR, SINCE YOUR
SUGGEST OTHER OPTIONS. COMPANY HAS NO EXISTING
CREDIT ACCOUNT WITH US, WE
WOULD LIKE TO REQUEST A
DEPOSIT OR PRE-PAYMENT IN
THE AMOUNT OF PHP____ PLUS A
LETTER OF GUARANTEE FROM
THE COMPANY SPECIFYING
● IF A CALLER WANTS THE BILL
THAT THEY WILL ANSWER FOR
TO BE PAID BY HIS/HER
THE BALANCE OF THE BILL
COMPANY, THE FOLLOWING
UPON CHECK OUT. COULD WE
PROCEDURE SHALL APPLY
PLEASE HAVE THIS LETTER ON
OR BEFORE YOUR GUEST WILL
● CHECK IN THE CREDIT LIST IF
CHECK-IN?
THE COMPANY IS AMONG
THOSE WITH A COMMERCIAL
CREDIT ACCOUNT
● “MAM/SIR, LET ME REFER
THIS MATTER TO OUR
CREDIT/FINANCE MANAGER
AND I’LL GET BACK TO YOU
FOR FEEDBACK.”

● IF THE BOOKING PARTY

REQUESTS THAT BILLS BE
● CONFIRM THE RESERVATION
CHARGED WITHOUT PRE-
AND VALIDATE ALL THE
PAYMENT, THE APPROVAL OF
INFORMATION THAT IS
THE CREDIT MANAGER MUST
RECEIVED.
BE SECURED. WITHOUT THIS
APPROVAL, THE PRE-
PAYMENT MUST BE MADE
BEFORE CHECK-IN OF GUEST
● “I’M SORRY TO INFORM YOU
THAT ALL SUITE ROOMS
HAVE BEEN BOOKED OR
FEBRUARY 14. HOW ABOUT A
DELUXE ROOM INSTEAD? WE
 ARE EXPECTED TO ARRIVE ON
● INFORM THE CALLER ABOUT FEBRUARY 14 AT 2 P.M. THE
THE 6 O’CLOCK POLICY (IF GUEST BILL WILL BE SETTLED
APPLICABLE ON THE HOTEL). BY THE COMPANY UNDER
THIS DOES NOT APPLY FOR THEIR COMMERCIAL
PREPAID GUARANTEED ACCOUNT.
BOOKING.
● “MAM/SIR, PLEASE ADVISE
MR./MRS. ___ TO CHECK IN NOT
● THANK THE CALLER LATER THAN 6PM OTHER
WISE THE HOTEL RESERVES
● “WE WISH TO CONFIRM THE RIGHT TO GIVE HIS/HER
RESERVATION FOR MR. AND ROOM TO WAIT LISTED
MRS. GUEST FROM FEBRUARY CLIENTS.
14-16. THEIR PREFERRED ROOM
IS DOUBLE DE LUXE AT A ● THANK YOU FOR CALLING.
RATE OF PHP 2,500.00. THEY HAVE A NICE DAY.

SOURCES OR AVENUES FOR ROOMS RESERVATION

● LETTERS
● EMAIL OR INTERNET ACCESS
● FAX
● TELEPHONE
● IN PERSON
● COMPUTER TERMINALS [CALL CENTERS, GLOBAL DISTRIBUTION
SYSTEM(GDS)]
● VIA CENTRAL BOOKING OFFICES

BSHM23 AMENDMENTS IN RESERVATION

1. EXTENSION OF STAY
2. EARLY DEPARTURE
3. ROOM CHANGE
4. EARLY ARRIVALS

THE TELEPHONE EXCHANGE

TELEPHONE MANNERS
1. Maintain a pleasing voice personality
VOICE – Volume is properly modulated, tone is not harsh and should sound
gracious and healthy.
2. CORRECT PHRASEOLOGY – courteous words and appropriate phraseologies
are used.
3. MANNER – considerate, interested attentive, accommodating

● use a slightly rising inflection when making a statement. it soften the tone
making you sound gracious.
● all incoming calls outside the hotel should be answered: (NAME OF HOTEL,
GREET, SAY YOUR NAME AND OFFER ASSISTANCE. NOTE: NEVER SAY
“HELLO” AS THIS SOUNDS UNPROFESSIONAL)
● calls from the house phone or from the guestrooms should be answered:
(FRONT DESK, OFFER ASSISTANCE)
● always READY a pad and pencil for noting down messages.
● when the phone rings, it should be answered within 3 rings. as much as possible
answer it on the first ring. a ringing phone is like someone’s knocking on the
door.
● after the caller has relayed his/her message, it is important to read back the
messages to him/her for validation. this will make the caller feel that you are
paying attention to his/her message.
● while talking with someone nearby and your phone rings, excuse yourself and
answer the phone promptly.
● maintain a friendly and accommodating conversation with guests, be friendly
but not
over familiar or too casual.
● speak clearly and distinctively. The distance between the mouth and the
transmitter must be ½ inch.
● when you leave your desk, leave a message of your whereabouts.
in dealing with callers, be attentive to avoid request for repetition, never
interrupt while
the other party is speaking, avoid slang words like “yeah”, speak in the language
which you are addressed – English for English
● be tactful when screening calls, say “May I know who is calling?” or “May I
know who is on the line please?”
● while inside the Telephone Exchange, conversation should be limited to
business matters only. Private calls are not allowed.
● avoid eating or drinking while on your station.
 ● never listen to private conversations on the phone nor divulge confidential
information
● gathered on the phone.

TELEPHONE EXCHANGE
● ANSWERING CALLS
● CONNECTING CALLS TO A GUESTROOM OR OFFICE
- ask the name of the caller
- check if the caller knows the guest’s room number.
- connect the caller to the front desk for assistance if the operator doesn’t know
the name of the guest.

● HANDLING WAKE UP CALLS

● HANDLING MESSAGES FOR A GUEST
● OVERSEAS AND LONG DISTANCE CALLS. (NDD and IDD)
- calling party and party called
- telephone number
- place/city called
- time filed

BSHM90 CREATIVITY AND INNOVATION OF ENTREPRENEURSHIP

Creativity is a critical skill for recognizing or creating opportunity in a dynamic

environment. Creativity resulting in products, services, and processes is now more
important than ever due to globalization and hyper competition.

Creativity refers to the essential source of inventiveness and can lead to the
formation of new firms and to make improvements in existing products of the
company to become more efficient and competitive in the marketplace. A blend of
creativity and technology in the activities of entrepreneurship to commercialize the
idea related to products and services is helpful to strengthen the entrepreneurship.
Three key aspects of creativity are:
(1) knowledge,
(2) drive, and
(3) ability.

Knowledge of the course of action is required for opportunity identification,

problem solving, and decision making. Without knowledge, creativity does not have
any substance to work with. Creativity puts together already available information in
a manner to come up with new solutions to new problems.

Generally, creative people can be good at meeting the needs of a company and
adjusting as those needs change. They are able to think and find solutions to problems
as needed.

These are just the kinds of people that are needed in positions devoted to:
● Satisfying customers
● Leading employees
● Keeping hospitality businesses competitive

Drive refers to the passion, desire, and motivation to do something new and
novel with the confidence to proceed as a first mover.
Ability refers to the ways in which an individual seeks to identify a solution to a
problem by adopting diverse and creative techniques in order to accurately assess and
evaluate the situation and identify the best, viable course of action.
IMPORTANCE OF CREATIVITY AND INNOVATION IN ENTREPRENEURSHIP
The major contributor to economic growth is the entrepreneurship.

Creativity has a huge impact since it has to havethe skills of entrepreneur to

create some innovative ideas that will make the business successful. It allows the
business to make some interesting strategies that can give advantage to
entrepreneurs.

Innovation is the key to the economic development of any company, region of a

country, or country itself. As technologies change, old products decrease in sales and
old technologies dwindle. Inventions and innovations are the building blocks of the
future of any economic unit.

TYPES OF INNOVATION
1. BREAKTHROUGH INNOVATION- Breakthrough innovations include such
ideas as: the steam engine, the computer, the airplane, the automobile, the
Internet

2. TECHNOLOGICAL INNOVATION, occurs more frequently than breakthrough

innovation and in general is not at the same level of scientific discovery and
advancement.

3. ORDINARY INNOVATION. is the one that occurs most frequently. These more
numerous innovations usually extend an existing innovation into a better
product or service or one that has a different-usually better—market appeal.
These innovations usually come from market analysis and pull, not technology
push.

1. Creation of innovative ideas: When an entrepreneur gets innovative that is

efficient and in favor of the business, then they can stay ahead o the curve and
beat the competition in a very proper manner. It is a kind of learning skill that
is possessed by some individuals to explore some inventive ideas and thoughts
that can create a huge difference and help the business to stay always in the hit
list.

2. Novel ways to develop and improve the products: Creativity is all the way
associated with making changes in the products or services in such a way that it
creates something different. Chances of improvement in any product are high
but it just needs some sort of creative thinking to know what is missing in the
products. This thing can only be assessed by a creative entrepreneur.

3. Thinking out of the world: The intention and imagination of producing

something different with unique ideas are called Creativity. Imagination is
always must to cross the boundaries between the normal and unique and come
up with something that can help you think outside of the box. The creative
entrepreneur always thinks out of the world and replaces the traditional
solutions with inventive ones. Creativity meant to be creates something new,
interesting and versatile to get some potential.

4. Growth of new niches with creativity and entrepreneurship: It is vital to

explore the new aspects of conventional business in theentrepreneurship. It can
be done in various ways such as by changing the manufacturing techniques,
mode of delivery or make some changes in the service or product. All these
 changes create a big difference in business strategies and give birth to a new
niche.

5. Startup success is not enough: Sometimes, the entrepreneurs get some initial
ideas that establish a creative image of the entrepreneur in the eyes of the
people and they think that it is not required to be creative again in the future.
But this is not at all enough to succeed in the avenue of business as creativity
keeps a business to remain ahead of the curve.

6. A table full of untraditional ideas: Conventional thinking leads to the same

procedure for a long time if everyone is doing a particular work in the same
way. But if you want to succeed, then you have to challenge the conventional
techniques and bring something new in the marketplace.
7. Stand out from the crowd: A startup with huge success is something
remarkable that can set an example that you are completely unique from
others. Need to get up from the crowd.

8. Pushing your potential and never stay settle down: If the business is running
smoothly and the entrepreneur is comfortable with the wholeprocess, then it is
quite dangerous as well as monotonous too. Although the business is doing fine
it does not mean that you can’t do better

9. Become a solution: Creativity is not just a flash of motivation but sometimes,

the great designers, artists and writers fail in front of the creativity.
Continuous working on the problem is the only solution to make it right.

BSHM23 THE FIVE STEPS TO AN INTRAPRENEURIAL STRATEGY

(1) developing the vision,

(2) encouraging innovation,
(3) structuring for an entrepreneurial climate,
(4) developing individual managers for entrapreneurship and
(5) developing venture teams or innovation teams (I-teams).
BSHM90 BUSINESS LEGAL ENTITY

A legal entity is any company or organization that has legal rights and
responsibilities, including tax filings. It is a business that can enter into contracts
either as a vendor or a supplier and can sue or be sued in a court of law.

Legal entities are structured in a way that allows for a greater degree of
protection for strictly personal assets from lawsuits and regulatory penalties. Each
type of entity provides a different set of protections and tax burdens.

A legal entity can enter into contracts and assume the obligations of those
contracts, can borrow and pay debts, can file suits and be named by other parties in
suits, and can be held to account for the results of those lawsuits.

WHAT ARE THE DIFFERENT TYPES OF LEGAL ENTITIES?

Legal entities are the various structures under which you may create a
corporation: from S corporations and C corporations to limited liability companies,
sole proprietorships, trusts, nonprofits and so on.
 There are around 15 types of business legal entities in the U.S. that require
different variations of legal entity documents. However, the most common legal
structures to choose from are:

SOLE PROPRIETORSHIP – someone who owns an unincorporated business by

himself or herself, making all of the decisions but taking all of the risks.

PARTNERSHIP – an easy way for business owners to share the responsibilities

and profits of a company; typically strengthened by a partnership agreement, making
clear the working relationship between the partners from the outset.

C CORPORATION – the most common type of U.S. corporation, establishing a C

Corporation offers liability protection meaning the business owners’ assets are not at
risk. Yet the downsides include heightened regulatory complexity and increased tax
rates.
BSHM90 GUIDED BY ARTICLES OF INCORPORATION
Aspects of Legal Entity

A tax is a compulsory financial charge orsome other type of levy imposed on a

taxpayer (an individual or legal entity) by a governmental organization in order to
fund government spending and various public expenditures. A failure to pay, along
with evasion of or resistance to taxation, is punishable by law. The main purpose of
taxation is to raise revenue for the services and income supports the community
needs.

Taxation: The level and type of taxes varies with the type and company formed
and the country’s laws. This is probably the or one of the most important factors in
the choice of the legal form chosen.

2. Number of employees: The number and type of employees the company will have in
the future as it builds its market position is another sector. This includes whether
citizens outside the country will need to be hired. The size of the company has a
significant impact on the types and costs of the fringe benefits.

Besides the usual benefits of retirement, health and dental insurance, other benefits
include: training, education, and upgrading knowledge. The fringe benefit package
that can be offered vary by the types of legal form used. The fringe benefits of the top
management team and owners must also be taken into account.
 DEVELOPING ENTREPRENEURIAL VENTURES

A.Initiating Entrepreneurial Venture

THE RISE OF INTRAPRENEURS

The interest in entrepreneurial thinking in large organisations started to

develop in the mid-1980s. In 1982, the term ‘intrapreneur’ was made known, in that
job growth would come either from small companies or from those bigger companies
that managed to split themselves into smaller and smaller profit centres, which would
need to become more and more entrepreneurial.

Intrapreneurship is the system wherein the principles of entrepreneurship are

practiced within the boundaries of a firm. An intrapreneur is a person who takes on
the responsibility to innovate new ideas, products and processes or any new invention
within the organization

CHARACTERISTICS OF INTRAPRENEURSHIP

1. Employee Engagement;
2. Continuous idea flow to remain competitive
3. Crucial to long-term sustainability

Characteristics Private (Entrepreneur) Corporate (Intrapreneur) Public Sector(Social

Corporate
Entrepreneurship)

Objective Freedom to discover Goal oriented; Motivated Motivated by power and

Opportunities; Goal but influenced by the achievement; Motivated
Oriented; Achievement; corporate characteristics to serve
Earn profit; Earn for the betterment o the
Salary; Promotion; society

Focus Competition; Macro Development of new Bring value to the

environment products and services; available resources for
Growth the citizens’ welfare
Strategies; Micro and
Macro Environment

Innovation Create valuable products Create new products and Bias towards action and
through available resources services thru technological bureaucracy
advancement; Investigate
innovation and invention

Opportunity Pursue opportunity base on Pursue opportunity Uses every opportunity

 the independently towards
available resources on the available resources growth and development

Risk Taking Risk taker (personal and Moderate risk taker Calculate risk (not taking
finances) (career personal
related) risk)

Character and Self Strong knowledge on Strong technical and Strong political skills
Skills business product
knowledge

BSHM161 Chapter 5 :OPERATIONS MANAGEMENT

MANAGING QUALITY SYSTEMS

QUALITY
What is QUALITY??? Definitions by “QUALITY GURUS”

DEFINITIONS OF QUALITY
● Conformance to standards.
● Freedom from deficiency or defects.
● Features that meets consumer needs and give customer satisfaction.
● Find and know what consumer wants?
● To do a right thing at the right-time.
● To do a right thing at first time
● Fitness for use or purpose
 ● Value or worthiness for money, etc.

For better clarity of “Quality” term, we must learn and understand the concept/
meaning of the following topics :

QUALITY ASSURANCE

QA contains all those planned and systematic actions necessary to supply

adequate confidence that a product or service will satisfy/fulfill given requirements
for Quality. QA includes QC, but it emphasis on quality in the design of products and
processes.

QUALITY CONTROL

QC is the process through which we measure the actual quality performance

and compare it with the set standards. And if there is a deviation then we take
corrective actions.

The typically quality control programme is based on the periodic inspection,

followed by feedback of the results and change or adjustment whenever required.

What is QUALITY SYSTEM?

A Quality System is the company wide and plant-wide operating work structure,
responsibilities, procedures and processes for guiding the coordinated actions of the
workforce, the machines, and the information of the organization in the best and
most practical ways to assure customer satisfaction. Quality Assurance and Quality
Control both
are the part of quality system.

What is Operations Management System?

integrated set of requirements, responsibilities and business processes that will
continuously improve performance and help you achieve company‘s goals. Most
companies have many overlapping goals that can all be addressed by the Management
System:
• Incident prevention
• Enhanced safety culture
• Risk identification and management
• Regulatory compliance
• Operational performance
• Organization collaboration
• Stakeholder management

BSHM161 MEASURE QUALITY

Step One: Decide What Matters
Start by deciding which elements of your product or service matter to
customers, and which ones matter to company cost control. These will be the items
you want to measure. You want a fairly short list of key quality items, and you do
NOT want to fill it up with the owner‘s personal preferences if they do not matter to
customers!

Step Two: Specify Your Standard

If you don‘t know what you‘re managing quality for, any result is acceptable.
But the idea of quality is that some things are NOT acceptable! Standard must be a
measurement: the target or ideal result for that quality element, the upper and lower
limit of acceptable variation (called ―¨control limit¨), and the method of calculation.
For example, the target is 16 ounces per package, acceptable variation is 0.1 ounces
above or below, and the calculation is percent of packages within the acceptable range
per day‘s production.

Step Three: Managing Quality Requires Measuring Performance

Perform the calculation as designed and when planned

Step Four: Find a Pattern in the Results

Managing quality can only do that if you find what caused the variation. The first
step in finding the cause is to identify patterns, such as day of week, time of day, workers
involved, materials or machine involved, type of variation (e.g. over vs. under), etc.
Several types of patterns can be found, so you need to focus on those happening
most often. Fixing these will solve most if not all of the problem. A good tool for this is the
Pareto chart, based on the 80/20 idea: 80% of the problem is caused by 20% of the inputs.
For example, 80%
of the complaints come from 20% of the customers, or 80% of the failures happen on
Fridays, or use a certain machine. The SORT and graphing functions in Excel can put this
into a simple bar graph.

Step Five: Brainstorm to Find the Root Cause

Think about the potential reasons that might appear under these headings:
Materials, Machinery, Methods, Manpower. Other categories can be Technology,
Processes, and Facilities. A tool called the Fishbone or Cause-and-Effect Diagram can
remind you what to consider. For an example, see Cause and Effect Analysis (Fishbone
Diagrams).
In the brainstorming session, generate ideas by asking what is being done, when, by
who, where, how, and how well according to your measures of quality and success.

Step Six: Select a Remedy

solution might be incentives to change behavior, or managing quality from
suppliers such as better materials, or redesigning a process to deliver better output faster.

Step Seven: Thoughtful Implementation

Buy-in comes from shared vision/values, explaining the reasons for the change, and
how the change enables reaching the vision better than the old way. Training is a wide
umbrella. It includes role changes as well as methods changes. Explain the new way and
why, show test results, demonstrate, and then have the staff demonstrate. Need to have a
visual reminders (¨job aids¨) as well as training material. Need to measure performance to
see that the change was really implemented, and measure results to see if it worked as
planned
QUALITY OPERATIONS MANAGEMENT
Achieving high quality does not happen by accident
• The production process must be properly managed
• Quality management: – Concerned with controlling activities with the aim of
ensuring that products and services are fit for their purpose and meet the
specifications
• Two main approaches
– Quality control
– Quality assurance

TOTAL QUALITY MANAGEMENT

● Communication
● Decision-making based on facts
● Strategic and systematic approach
● Integrated system
● Process centered
● Employee involvement
● Focus on customer
● Continuous improvement

Total quality management (TQM) is a term that originated in the 1950s and is
today used mainly in Japan. It is the equivalent of what other countries or
organizations may call a company-wide quality management system, enterprise
quality management system, or integrated quality management system, to name a
few.

The term total‘

̳ means the entire organization— all teams, departments and
functions—is involved in quality management. The system‘
̳ refers to the managerial
and technological methods to achieve quality requirements and business objectives
throughout an entire organization. Although it may go by various names, Juran
believes enterprise
̳ excellence‘ to be a more appropriate name for TQM.

KEY PRINCIPLES OF TQM

Total quality management has a number of key principles which—when
implemented together—can move any organization towards business excellence.

CUSTOMER FOCUS
Central to all successful TQM systems is an understanding that quality is
determined by the customer. No matter what measures you introduce to improve the
quality of your products and services, the only way of knowing if they have been
successful is customer feedback, whether in the form of reviews, return rates, or
satisfaction surveys.

EMPLOYEE INVOLVEMENT
Every person in an organization—from entry-level workers to management—
has a responsibility for the quality of products and services. However, employees can
only be invested if they feel empowered to make their own decisions, something that
depends on management creating the right workplace environment
.
CENTERED ON PROCESS
A TQM system will fail without a clear focus on processes and process-led
thinking. A process fault is ultimately the cause of most problems, which is why
effective monitoring of every single step is an essential part of assessing, maintaining
and improving quality.

INTEGRATED SYSTEM
An organization should have an integrated system that allows for effective total
quality management. This may be a bespoke system, or one based on a quality
standard such as ISO 9001, but it should be understood and applied across all
functions and departments.

STRATEGIC & SYSTEMATIC APPROACH

Critical to quality management is the existence of a strategic plan that outlines
how an organization intends to achieve its mission and business goals. It goes without
saying that quality should be a core component of such a plan.

DECISION-MAKING BASED ON FACTS

Business performance can only be assessed using the available facts, such as
sales data, revenue figures, and customer retention rates. The opinions of customers,
employers and suppliers should never be used to inform decisions.

COMMUNICATION
Effective communication is essential when an organization is implementing
significant changes for the sake of business improvement. Every member of staff
should be made aware of the strategy, the timescales involved, and the reasons for
implementing it.

CONTINUOUS IMPROVEMENT
 Applying the principles of DMAIC and Lean Six Sigma will instill an
organization with a culture of continuous improvement, driving all employees to
constantly seek new ways to be more competitive and deliver high-quality products
for all stakeholders.

WHY FOLLOW TQM PRINCIPLES?

The quality department in many companies is only responsible for the quality
of products, with its focus typically limited to the supply chain. It has no role in
driving quality throughout the organization, yet organizations have many
opportunities to drive customer experience beyond products, with customer service
being a prime example.

In recent years—as competitive pressures have forced a theme going far beyond
traditional quality control, inspection, quality engineering, and reliability engineering
— the role of the quality department and function is carried out by all departments in
a TQM system.

Managing quality in a TQM system ensures your organization moves from its
current ― ¨little q¨ or product focus to ― ¨big Q, enterprise-focus¨ thinking. The
greatest benefit is reducing the total cost of quality by improving all products,
services and processes, not just the ones in production.

Other benefits of TQM include:

• Reduce risk and mitigate risk when designing new products and processes
• Resolve problems before they occur
• Resolve problems that occur during operations
• Improve supplier performance
• Control processes to avoid risk even when scaling up
• Increase productivity or all employees
• Reduce the total cost of quality not just the costs of poor quality of products
BSHM161 MANAGING SERVICE QUALITY

Five Dimensions of Service Quality

BSHM161 CHAPTER 4: MANAGING OPERATIONS STRATEGICALLY

The Role of Strategy in OM

• to provide a plan for the operations function so that it can make the best use
of its resources.
• specifies the policies and plans for using the organization's resources to
support its long-term competitive strategy.

The Role of Strategy in OM

• Global View
● Provide better goods and services.
● Improve the organization's supply chain.
● Reduce costs, such as labor, tariffs, taxes, and more.
● Learn to improve operations.
● Understand other markets.
● Employ top-of-the-line contributors from all over the world.
1. Provide Better Goods and Services
● Providing new customers with quick and adequate service creates returning
customers. The same applies when a customer is satisfied with a good and keeps
buying more of the same.
2. Improve the Supply Chain
● moving or locating new facilities in countries that are close to unique resources,
such as expertise, materials, or workforce

3. Reduce Costs
● Moving production to international locations can save money.
● Low-skill jobs shifted to countries with lower wage costs saves money.
● It also frees higher skilled workers to perform more high-skill jobs, instead of
tasks that are less challenging and make inefficient use of their time.

4. Learn to Improve Operations

● Look for opportunities to partner or exchange one strength for another.
Ex. One country may excel at production, while your firm has excellent inventory
control.
● Working together on a product line may improve efficiency for both parties --
something that translates into lower prices or improved quality for your
customers.

5. Understand Markets
● effects of participating in international business is the requirement to interact
with foreign customers provide great insight into current markets, trends, and
customer demands that can help your organization plot a course for the future.
6. Employ Global Talent
● By being global, organization can offer more, and better, employment
opportunities
● opportunities are in high demand by talented individuals looking to expand and
enhance their career.
● Their gain is also the gain of the organization (access different ideas, knowledge
bases, and skill sets.

PRODUCT LIFE CYLE

1. Introduction stage is the stage in which a new product is first distributed and made
available for purchase, after having been developed in the product development stage.

2. Growth stage is the stage in which the product’s sales start climbing quickly. The
reason is that early adopters will continue to buy, and later buyers will start following
their lead, in particular if they hear favorable word of mouth. This rise in sales also
attracts more competitors that enter the market.

3. Maturity stage is the stage in which the product’s sales growth slows down or levels
of after reaching a peak.

4. Decline stage is the stage in which the product’s sales decline.

Strategy and the Product Life Cycle

BSHM161 WHAT IS STRATEGIC MANAGEMENT ?

Strategic Management
● The art and science of formulating, implementing and evaluating cross
functional decisions that enable an organization to achieve its objective. (Fred
R. David)
● Application of the basic planning process at the highest levels of the company
● Top management sets goals for the performance of the company
● Carefully formulating, implementing, and evaluating plans and strategies
Model of Strategic Management

Planning
● a comprehensive process for
determining what a business should
become and how it can best achieve
that goal appraises the full potential
of a business and explicitly links the
business’s objectives to the actions
and resources required to achieve
them.

Execution
● provides a structured approach to
clarifying, communicating, implementing, and managing strategy goal of this
process is to ensure the organization focuses on developing high- value
capabilities and making investments that optimize value

Monitoring Developments and Progress

● monthly review of the Action Plans.
● A quarterly review of their assumptions, strategies and implementation plans
is also a must.

What is Operations Improvement?

● a fundamental requirement and continuous effort for any organization that
wishes to succeed in today’s environment of change and challenge. Along with
operational efficiency, it can play an enormous role driving growth and
profitability. Kepner-Tregoe (KT)
● works with clients to reduce waste, lower costs, and set up sustain able
programs that achieve dependable outcomes
● uses overall equipment effectiveness (OEE), a valuable key performance
indicator, to diagnose the utilization of operations.

BSHM161 OPERATIONS IMPROVEMENT

What is risk management?

 ● process of making and carrying out decisions that will minimize the adverse
effects of risk on an organization.
● Threats or risks can come from a wide variety of sources including financial
uncertainty, legal liabilities, management errors, natural disasters, and other
accidents.

Risk Management
There are many reasons to manage risk. Some of them include:
● Saving resources: people, income, property, assets, time
● Protecting public image
● Protecting people from harm
● Preventing/reducing legal liability
● Protecting the environment

BSHM161 Chapter 6: SUPERVISORY SKILLS IN TOURISM AND HOSPITALITY

Six Leadership Style Daniel Goleman
What is a competent Supervisor?
1. Setting Direction
● Vision determination: Developing an interesting and compelling picture of the
future
● Clarity of communication: Communicating clearly, concisely and consistently
● Option evaluation: Identifying different decision alternatives
● Harnessing input: Gathering people’s input and suggestions
● Motivation: Offering constant enthusiasm and encouragement to individuals

2. Planning and Organizing

● Preparation: Taking regular time to plan ahead
● Time management: Assessing task urgency and importance in the light of
available time
● Task allocation: Assigning work according to each individual’s skills and
experience
● Delegation: Identifying tasks that can be allocated to team members to aid
development
● Prioritization: Determining high versus low value added work and/or projects

3. Coaching/Developing People
● Style identification: Determining the best style to adopt to influence people
successfully
● People assessment: Analyzing people’s strengths and development needs
● Listening skills: Soliciting feedback and taking the input seriously
● Rapport building: Building positive relationships with team members over time
 ● Feedback giving/receiving: Offering and inviting constructive comment within
the team

4. Measuring and Managing Performance

● Goal/Benchmark setting: Identifying competitive targets to which to aspire
● Process identification: Reviewing the work systems that contribute most to
effective team performance
● Standards: Establishing clear guidelines for and measures of performance
● Quality: Seeking to constantly improve the quality of products and/or services
● Checking/Monitoring systems: Encouraging individuals to measure and check
performance at every level

5. Maintaining Effective Relationships

● Teamwork: Actively seeking ways in which cooperative relationships can be
built
● Communication: Listening to people attentively and relating to them
empathetically
● Collaboration: Creating regular opportunities for individuals to work together
● Morale maintenance: Looking after the emotional well-being of the team
● Empathy building: Putting yourself in the other