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Chapter Three Quality Management

Chapter Three Quality Management “Implementation of the quality principles in your organization requires time; however, the end result will bring customer loyalty, satisfaction, increased market share, and financial contribution.”

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Chapter Three Quality Management

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  1. Chapter ThreeQuality Management

  2. “Implementation of the quality principles in your organization requires time; however, the end result will bring customer loyalty, satisfaction, increased market share, and financial contribution.” Sue LantzschRegional Vice President OperationsHDS ServicesFarmington Hills, MI

  3. “Quality is sustainable, tangible value and it’s worth repeating over and over if you care enough.” Dan W. DarrowPresidentPalm Hospitality Company Orlando, FL

  4. Learning Objectives • Understand why and how shifts in paradigms occur and how to become a change maker • Contrast a traditional organization with a high- performance service organization • Understand process thinking and continuous improvement

  5. Learning Objectives (cont.) • Define the core principles of quality and how needs and expectations equal requirements • Know the kinds of customers and the characteristics of each

  6. Paradigms are how we view our environment Paradigms are our reality Change occurs out of necessity or persuasion Paradigm Shifts

  7. Leaders reduce resistance to change by developing positive attitudes in internal customers Must overcome fear and insecurity Good communication essential Explain advantages of changes Give others the chance to ask questions Ensure understanding Paradigm Shifts (cont.)

  8. Several senior operations executives informed the president of HDS Services that HDS was falling behind in the area of quality services and products This team convinced the president that there could be value in their attending a week-long presentation on the principles of quality improvement in Chicago This presentation was virtually responsible for a massive paradigm shift within HDS Services The HDS Example (1991): A Testimonial

  9. HDS was more than ready for a change and voted unanimously to adopt the proposed changes in management principles The race for quality has no finish line! The HDS Example (1991): A Testimonial

  10. People fight change for many reasons Fear Insecurity The way we know is comfortable Change means extra work Some people simply like the old way Change Fighters

  11. Must overcome fear and insecurity Spell out expectations exactly – good communication is essential Explain the advantages of the proposed change Ensure understanding Change Makers

  12. Traditional vs. High Performance Service Organizations Others?

  13. Hassles across area Traditional functional areas or departments Process Thinking

  14. Process Thinking (cont.) • Goal of process thinking is to identify the root causes to eliminate hassles at the source • Cross-functional teams help identify the root causes • Input gathered from as many affected functional areas as possible

  15. Process Thinking (cont.) • Critical processes add value to the customer’s experience with the organization: • Making hotel reservations • Maintaining required temperatures of food in a cafeteria • Cleaning a resort swimming pool • Filling a vending machine

  16. Linear and Continuous Measured Improvement

  17. Continuous Improvement • A series of planned and monitored outcomes • A step-like incremental series of better results • It is not the same as a straight-line linear improvement

  18. Functional Teams • SQIT (Senior Quality Improvement Team) • The organization’s executive team • The overseer of quality improvement initiatives • QIT (Quality Improvement Team) • Composed of managers/workgroup leaders • Primary responsibility is to make decisions and monitor quality activities

  19. Organizational Model

  20. Functional Teams • WGT (Work Group Team) • Based in the functional area in which they work • Goal is to have members become more self-directed by self-managing • AGT (Action Group Team) • Set up to work on a specific hassle or opportunity for improvement • Includes representatives from multiple departments

  21. Core Principles of Quality • Continuous Improvement • Of processes that make a difference to customers • Customer-First Orientation • Everything done must focus on the customer • Trust • Trust internal customers to perform the quality work they have been empowered to do

  22. Core Principles of Quality • Teamwork • Use strengths of individuals and synergy of teams to serve customers • Management by Fact • Decisions fact based-not emotionally based • Preventing hassles/errors/defects • Do things right the first time • Celebration of Success • Recognition

  23. Customers First • Who is the customer? • What are the requirements (i.e., needs, expectations) of the customer?

  24. Service • Quality management focuses on the importance of service • Level of service quality • is a part of the firm’s competitive advantage • combines the activities of both customer-contact and support staff

  25. Culture • Quality is an overriding principle in the organization’s culture • The culture of a quality-driven organization utilizes teamwork with cross-functional teams • Culture embraces empowerment

  26. External Customers • Those who give time and money for an organization’s products/services • Anyone outside the organization Examples: • Hotel guests • Hotel suppliers • Regulating agencies

  27. Customer-Focused Service Organization

  28. External Customers • They want to know that the associates in the organization have their needs and expectations foremost in their minds • They want to know that the associates will do anything within reason to satisfy their needs • They want to be understood and satisfied

  29. External Customers (cont.) • They expect decisions and plans made and executed are all in service of the person who is paying the bill • They want consistency • If a hassle occurs, they want it fixed quickly

  30. Internal Customers • Foremost focus since associates carry the culture of service to external customers • F&B outlets in the hotel are customers of the hotel’s purchasing department • Hotel’s front office is a customer of the accounting office • Restaurant servers are customers of the kitchen staff

  31. Internal Customers (cont.) • They want to be involved in the planning of the work that affects them • They do not want to be blamed if there is an ongoing problem with a process that cannot be fixed by them • Most want to contribute to planning the effort to continuously improve the levels of quality

  32. Internal Customers (cont.) • They appreciate being involved in working on quality improvement teams • Associates need mentors • Mentors help build the necessary skills needed to provide external customers with a quality experience

  33. Existing Customers • Current users of the organization’s processes • The reason we create products and services Examples: • Hotel guests • Club members • Managed services business clients

  34. Former Customers • They used to use the products and services of the organization • Important source of information on hassles • If hassles eliminated, they might return

  35. Indirect Customers • Do not directly use the organization’s products and services, but they have an effect on these customers Examples: • Government regulators • Advocacy groups

  36. Potential Customers • They have never tried organization’s products and services • May be convinced to try products and services

  37. Suppliers • Provide products, services, and information to the organization • They share in the quality creation and value determination when treated as strategic allies and partners

  38. Ultimate Customers • The customers who ultimately receive the products or services when the organization is part of a distribution network Examples: • Residents in an assisted living facility • People who purchase from vending machines

  39. Summary • Each of us has paradigms that help us interpret the many kinds of information that we are exposed to each day • Our paradigms are either shifting or staying the same, depending on whether we are change makers or change fighters • In contrast to a traditional company, a high performance service organization is driven by the needs of both its internal and external customers

  40. Summary (cont.) • High performance service organizations understand the needs, wants, and expectations of their customers • In quality management, there has been a paradigm shift to the more successful high performance service organization • These organizations use various critical processes to meet and exceed customer needs and expectations

  41. Action Group Team (AGT) Celebration of Success Continuous Improvement Core Principles of Quality Key Terms

  42. Critical Processes Customer Feedback Customer-First Orientation Empowerment Key Terms (cont.)

  43. Key Terms (cont.) • High Performance Service Organization • Machiavellian Managers • Management by Fact • Preventing Hassles

  44. Key Terms (cont.) • Quality Improvement Team (QIT) • Senior Quality Improvement Team (SQIT) • Teamwork • The Better Way

  45. Key Terms (cont.) • Traditional Service Organizations • Work Group Team (WGT)

  46. Relevant Web Sites • Basic Requirements for High Performance Organizations: http://www.jboyett.com/high.htm • High Performance Balance (Technology, Management, and Leadership) (by Jim Clemmer): http://www.clemmer-group.com/models/hperflship.shtml • Quality Management Principles: http://www.iso.ch/iso/en/iso9000-14000/iso9000/qmp.html

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