Pointers to review [midterm examination 2023]

 Overview of TQM (Total Quality Management)

 Explain the meaning of total quality management (TQM)
 Identify the costs of quality
 Describe the evolution of TQM
TOTAL QUALITY MANAGEMENT
- An integrated effort designed to improve quality performance at every level of
the organization.
- Is about meeting quality expectations as defined by the customer; this is called
customer-defined quality.
DEFINING QUALITY
Common definitions of quality in terms of:
- Conformance to specifications
- Fitness for use
- Value for price paid
- Support services
- Psychological criteria
Conformance to specifications
- How well a product or service meets the targets and tolerances.
Fitness for use
- A definition of quality that evaluates how well the product performs for its
intended use.
VALUE FOR PRICE PAID
- Quality defined in terms of product or service usefulness for the price paid.
- This is the only definition that combines economics with consumer criteria; it
assumes that the definition of quality is price sensitive.
SUPPORT SERVICES
- Quality defined in terms of the support provided after the product or service is
purchased.
- Quality does not apply only to the product or service itself; it also applies to the
people, processes, and organizational environment associated with it.
 PSYCHOLOGICAL CRITERIA
- A way of defining quality that focuses on judgmental evaluations of what
constitutes product or service excellence.
Manufacturing Organizations
- Conformance to specifications
- Performance
- Reliability
- Features
- Durability
- Serviceability
Service Organizations
- Tangible factors
- Consistency
- Responsiveness to customer needs
- Courtesy / friendliness
- Timeliness / promptness
- Atmosphere
COST OF QUALITY
- The reason quality has gained such prominence is that organization have gained
an understanding of the high cost of poor quality.
- The most obvious consequence occurs when poor quality creates dissatisfied
customers and eventually leads to loss of business.
The first category consists of costs necessary for achieving high quality, which are
called quality control costs. These are of two types: prevention costs and appraisal
costs.
The second category consists of the cost consequences of poor quality, which are
called quality failure costs. These include external failure costs and internal failure
costs.
COST OF QUALITY (QUALITY CONTROL COST)
Prevention cost
- Costs incurred in the process of preventing poor quality from occurring.
- Employee training in quality measurement is included as part of this cost, as
well as the costs of maintaining records of information and data related to
quality.
 Costs of preparing and implementing a quality plan.
Appraisal cost
- Costs incurred in the process of uncovering defects.
- They include the cost of quality inspections, product testing, and performing
audits to make sure that quality standards are being met.
 Costs of testing, evaluating, and inspecting quality.
COST OF QUALITY (QUALITY FAILURE COSTS)
Internal failure cost
- Costs associated with discovering poor product quality before the product
reaches the customer.
- One type of internal failure cost is rework, which is the cost of correcting the
defective item. Sometimes the item is so defective that it cannot be corrected
and must be thrown away. This is called scrap
 Costs of scrap, rework, and material losses.
External failure cost
- Costs associated with quality problems that occur at the customer site.
- They include everything from customer complaints, product returns, and
repairs, to warranty claims, recalls, and even litigation costs resulting from
product liability issues.
 Costs of failure at customer site, including returns, repairs, and recalls.
EVOLUTION OF TOTAL QUALITY MANAGEMENT (TQM)
- In the 1970s and 1980s many U.S. industries lost market share to foreign
competition. In the auto industry, manufacturers such as Toyota and Honda
became major players. In the consumer goods market, companies such as
Toshiba and Sony led the way. These foreign competitors were producing
lower-priced products with considerably higher quality.
- Since the 1970s, competition based on quality has grown in importance and has
generated tremendous interest, concern, and enthusiasm. Companies in every
line of business are focusing on improving quality in order to be more
competitive. In many industries quality excellence has become a standard for
doing business. Companies that do not meet this standard simply will not
survive.
CUSTOMER FOCUS
- TQM recognizes that a perfectly produced product has little value if it is not
what the customer wants.
- Companies need to continually gather information by means of focus groups,
market surveys, and customer interviews in order to stay in tune with what
customers want. They must always remember that they would not be in
business if it were not for their customers.
CONTINUOUS IMPROVEMENT
- A philosophy of never-ending improvement.
- Continuous improvement, called kaizen by the Japanese, requires that the
company continually strive to be better through learning and problem solving.
- Because we can never achieve perfection, we must always evaluate our
performance and take measures to improve it.
THE PLAN–DO–STUDY–ACT (PDSA) CYCLE
- A diagram that describes the activities that need to be performed to
incorporate continuous improvement into the operation.
- There is a cycle, shown in the next slide is also referred as the Shewhart cycle or
the Deming wheel.
TWO approaches that can help companies with continuous improvement:
- the plan –do– study – act (PDSA) cycle and
- benchmarking.
SPECIFIC STEPS IN THE CYCLE (PDSA CYCLE)
Plan
- The first step in the PDSA cycle is to plan.
- Managers must evaluate the current process and make plans based on any
problems they find.
 - They need to document all current procedures, collect data and identify
problems.
Do
- The next step in the cycle is implementing the plan.
- Managers should document all changes made and collect data for
evaluation.
Study
- The third step is to study the data collected in the previous phase.
- The data are evaluated to see whether the plan is achieving the goals
established in the plan phase.
Act
- The last phase of the cycle is to act on the basis of the results of the first
three phases.
- The best way to accomplish this is to communicate the results to other
members in the company and then implement the new procedure if it has
been successful.
- Note that this is a cycle; the next step is to plan again. After we have acted,
we need to continue evaluating the process, planning, and repeating the
cycle again.
BENCHMARKING
- Studying the business practices of other companies for purposes of
comparison.
- Another way companies implement continuous improvement is by studying
business practices of companies considered “best in class.”
- The ability to learn and study how others do things is an important part of
continuous improvement
EMPLOYEE EMPOWERMENT
- Part of the TQM philosophy is to empower all employees to seek out quality
problems and correct them.
- - The new concept of quality, TQM, provides incentives for employees to
identify quality problems. Employees are rewarded for uncovering quality
problems, not punished.
- In TQM, the role of employees is very different from what it was in
traditional systems. Workers are empowered to make decisions relative to
quality in the production process.
  2. Guestology

- Guestology can be used to study and understand any organization in which

people are served, but using the manufacturing model to describe hospitality
services and experiences is questionable.

- Originated by Bruce Laval of The Walt Disney Company

- Customer-guests, which are scientifically studied Guests’ behaviors within the
hospitality organization are carefully observed
Guestologists: seeks to understand and plan for the expectations of an
organization’s targeted customers before they ever enter the service setting, so that
everything is ready for each guest to have a successful and enjoyable experience.
Practice:

- to increase guest satisfaction to more repeat

- visits
- drives revenues up

Findings:

- sustained outstanding services

Factors that improves by Guestology

 Meeting Customers Expectation

 Service

 Meeting Customers Expectation

- determining what those factors are modeling them for study
- measuring their impact on the guest experience testing various strategies that
might improve the quality of that experience
- providing the combination of factors or elements that attracts guests and
keeps them coming back

 Serving Internal Customers (Employee)

- The organization must meet or exceed the expectations of employees about

how they will be treated.
  Meeting Increased Competition

- New organizations or businesses spring up every day, so, the competition for
guest loyalty and profit is intense and will only grow more so in the futur

 Service

- intangible part of a transaction relationship that creates value between a

provider organization and its customer, client, or guest

 Service Product

- It refers to a pure service with no tangible product

 Service Industries

- It is the industries that are not concerned to production of any physical goods
or products

 Goodts to Services to Experiences

- it is about the consumers want, that their goods and services packaged as part
of a memorable experience that has an emotional impact

 Understanding the Guest

- Understanding and appreciating that guests, their expectations, and their

capabilities are varied motivates the guest-focused organization to design
each guest experience from each guest’s point of view, to offer a personalized
experience insofar as possible.
  3. The Guest Experience

- It is the sum total of the experiences that the guest has with the service provider on
a given occasion or set of occasions.

Product, Setting, and Delivery

- Guest experience = service product + service setting + service delivery

system

Unique, Yet Similar

- Because incidents and occurrences are never exactly the same for two
people—whether at a theater, hotel, vacation resort, restaurant, or on a
cruise ship—no two guest experiences are exactly alike.

Components of Guest Experience

The Service Product

- The service product, sometimes called the service package or service/product mix, is
why the customer, client, or guest comes to the organization in the first place.

The Service Setting

- The term servicescape, the landscape within which service is experi-enced, has been
used to describe the physical aspects of the setting that contribute to the guest’s
overall physical feel of the experience.

The Service Delivery System

- The third part of the guest experience is the service delivery system, including the
human components and the physical production processes plus the organizational
and information systems and techniques that help deliver the service to the
customer.

Service Encounters and Moments of Truth

- The term service encounter is often used to refer to the person-to-person

interaction or series of interactions between the customer and the person
delivering the service.
Nature of Service

Services Are Partly or Wholly Intangible

- If the service rendered includes a tangible item, then the total guest experience is
the sum of the service-product mix, the environment within which it is delivered,
and the service product’s delivery

Services Are Consumed at the Moment or during the Period of Production or Delivery

- The service as a whole and from the customer’s perspective was consumed as
delivered. The customer can take home the hat, beads, and the memory of the
experience but not the service itself.

Services Usually Require Interaction between the Service Provider and the Customer, Client, or
Guest

- These interactions can be face to face, over the phone, on the Web, or by mail, e-
mail, or texting. When the interaction is face to face, customers and employees must
be taught how to coproduce the experience in some systematic way.

Guest Expectations

- Guests arrive with a set of expectations as to what that chosen hotel or restaurant
can and should do, how it should do it, how the people providing the service should
behave, how the physical setting should appear, what capabilities guests should
have to perform their roles or responsibilities in coproducing the experience, how
the guest should dress and act, and what the cost and value of the successfully
delivered service should be.
- These are the amenities, services, and overall customer experience that individuals
anticipate when they stay at a hotel.
- First-time guests build a mindset of expectations based on advertising, familiar
brand names, promotional devices, their previous experiences with other hospitality
organizations, their own imaginations, and stories and experiences of people they
know who have already been guests.
- People’s past experiences with an organization provide the primary basis for their
expectations regarding future experiences. This sets a high standard to meet: what
may create a “wow” experience for guests upon a first visit may be only “as
expected” the next time
- Most hospitality organizations try to provide their guests with accurate information
ahead of time so these customers come to the experience with expectations that
the organization can meet or exceed.
  4. Meeting Guest Expectations through Planning

The hospitality organization must meet or exceed the expectations of its guests.

 They will not remember later a delightful, carefully planned guest experience; they will
remember their unmet expectations as poor service and a bad experience.
 People tell their friends what a terrible experience your restaurant or hotel provided,
your reputation will be gone.
 Angry customers can instantly tweet their friends or post their complaints on
established Web sites or blogs dedicated to providing a means for customers to convey
their experiences with different organizations or products.

- The challenge for hospitality organizations is to anticipate guest expectations

as accurately as possible and then meet or exceed them.
- If the organization cannot meet certain types of expectations, it should not say
it can; it should not promise more than it can deliver.

DO NOT PROVIDE MORE HOSPITALITY THAN GUESTS WANT

Organizations must be careful not to over-deliver to the point of making

guests feel uncomfortable or unpleasantly surprised.

When does enough become too much? An excellent hospitality organization

- It will spend the time and money to train its employees to be alert to
customer cues, signals, and body language so they can fine-tune their
interaction with their customers.
- It will constantly survey or ask its guests what they thought about the
experience, to ensure that guests receive more service value than they expect
but not so much more as to detract from the experience.

JUST WHAT DOES THE GUEST EXPECT

Most guests have the same general expectations when they go to a hospitality
organization for service.

- To be told the truth and treated fairly.

- To be treated with respect.
- To receive mistake-free, careful, reliable service. To receive prompt solutions
to problems from empowered employees who care.
- To wait as short a time as possible.
 - To receive personal attention and genuine interest from service employees.
- To be kept informed about recovery efforts after having or reporting problems
or service failures.
- To receive assistance rendered willingly by helpful and trained service
employees.
- To receive accurate answers from service employees knowledgeable about
both service products and organizational procedures. To have customers’
interests come first.

Being aware of these common guest concerns and expectations should be

part of any hospitality organization’s knowledge base and training program.
However, benchmark organizations dig deeper to discover the more specific
guest expectations, which allows them to personalize each guest’s
experience as much as possible

QUALITY, VALUE, AND COST DEFINED

- In the hospitality industry, the terms quality, value, and cost have specialized
meanings to fit the guest-focused orientation of the benchmark firms.

QUALITY

- Two "equations" can help make clear what quality, value, and cost mean to the
guestologist.
- Quality is defined as the difference between the quality the guest expects and the
quality that the guest gets.

VALUE

- Organizations can add value to their guests' experiences by providing additional

features and amenities without increasing the cost.

COST

- The most important details are the cost of the meal, the opportunity costs of
missing out on alternative meals, and the cost of any risks associated with
entering into the service transaction.
- These costs comprise the "all costs incurred by guest" denominator of the second
equation and make up the total burden on the guest who chooses a given guest
experience.
COST OF QUALITY

- The cost of quality is an important concept in service organizations.

- It is often used as a reminder of how little it costs to provide service quality,
compared to the cost of not providing quality.

 5. "Eat That Frog" by Brian Tracy

1. Set the table: Decide exactly what you want. Clarity is essential. Write out your
goals and objectives before you begin
2. Plan every day in advance: Think on paper. Every minute you spend in planning
can save you five or ten minutes in execution
3. Apply the 80/20 Rule to everything: Twenty percent of your activities will
account for 80 percent of your results. Always concentrate your efforts on that
top 20 percent
4. Consider the consequences: Your most important tasks and priorities are those
that can have the most serious consequences, positive or negative, on your life or
work. Focus on these above all else
5. Practice creative procrastination: Since you can’t do everything, you must learn
to deliberately put off those tasks that are of low value so that you have enough
time to do the few things that really count.
6. Use the ABCDE Method continually: Before you begin work on a list of tasks, take
a few moments to organize them by value and priority so you can be sure of
working on your most important activities

7. Focus on key result areas: Identify and determine those results that you
absolutely, positively have to get to do your job well, and work on them all day
long.
8. Focus on key result areas: Identify and determine those results that you
absolutely, positively have to get to do your job well, and work on them all day
long.
9. Prepare thoroughly before you begin: Have everything you need at hand before
you start. Assemble all the papers, information, tools, work materials, and
numbers you might require so that you can get started and keep going
10. Take it one oil barrel at a time: You can accomplish the biggest and most
complicated job if you just complete it one step at a time
11. Upgrade your key skills: The more knowledgeable and skilled you become at your
key tasks, the faster you start them and the sooner you get them done
12. Leverage your special talents: Determine exactly what it is that you are very good
at doing, or could be very good at, and throw your whole heart into doing those
specific things very, very well.
13. Identify your key constraints: Determine the bottlenecks or choke points, internal
or external, that set the speed at which you achieve your most important goals,
and focus on alleviating them.
14. Put the pressure on yourself: Imagine that you have to leave town for a month,
and work as if you had to get all your major tasks completed before you left.
15. Maximize your personal power: Identify your periods of highest mental and
physical energy each day, and structure your most important and demanding
tasks around these times. Get lots of rest so you can perform at your best.
16. Motivate yourself into action: Be your own cheerleader. Look for the good in
every situation. Focus Conclusion: Putting It All Together 115 on the solution
rather than the problem. Always be optimistic and constructive.
17. Get out of the technological time sinks: Use technology to improve the quality of
your communications, but do not allow yourself to become a slave to it. Learn to
occasionally turn things off and leave them off.
18. Slice and dice the task: Break large, complex tasks down into bite-sized pieces,
and then do just one small part of the task to get started.
19. Create large chunks of time: Organize your days around large blocks of time
where you can concentrate for extended periods on your most important tasks.
20. Develop a sense of urgency: Make a habit of moving fast on your key tasks.
Become known as a person who does things quickly and well.
21. Single handle every task: Set clear priorities, start immediately on your most
important task, and then work without stopping until the job is 100 percent
complete. This is the real key to high performance and maximum personal
productivity

10 MOTIVATIONAL QUOTES by: Bryan tracy

1. "If you have to eat two frogs, eat the ugliest one first." This is another way of
saying that if you have two important tasks before you, start with the biggest,
hardest, and most important task first.”
2. "The hardest part of any important task is getting started on it in the first place.
Once you actually begin work on a valuable task, you seem to be naturally
motivated to continue.”
3. “One of the very worst uses of time is to do something very well that need not to
be done at all.”

4. “Rule: Continuous learning is the minimum requirement for success in any field.”
5. "Everyone procrastinates. The difference between high performers and low
performers is largely determined by what they choose to procrastinate on.”
6. “People who take a long view of their lives and careers always seem to make
much better decisions about their time and activities than people who give very
little thought to the future.”
7. "The Key to Success is Action.”
8. "The law of Forced Efficiency says that "There is never enough time to do
everything, but there is always enough time to do the most important thing.”
9. “The most valuable tasks you can do each day are often the hardest and most
complex. But the payoff and rewards for completing these tasks efficiently can be
tremendous.”
10. “Refuse to allow a weakness or a lack of ability in any area to hold you back.
Everything is learnable. And what others have learned, you can learn as well.”