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Quality Systems

Quality Systems. PG Diploma in Hospitality Management Customer Service and Quality Systems – Session 5. Objectives. Use Five Gap Model to identify ways to improve customer service Understand the concepts behind TQM and how they can be used to improve quality and efficiency

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Quality Systems

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  1. Quality Systems PG Diploma in Hospitality Management Customer Service and Quality Systems – Session 5

  2. Objectives • Use Five Gap Model to identify ways to improve customer service • Understand the concepts behind TQM and how they can be used to improve quality and efficiency • Understand the application of SERVQUAL to improve customer service

  3. Review • Explain the terms ‘Theory X’ and ‘Theory Y’ • Briefly explain the motivational theories of:- • Abraham Maslow • Frederick Herzberg • Victor Vroom • Explain why, in the light of the theories of Geert Hofstede, you would design work groups differently for groups of Americans and groups of Chinese. What would be different about how you would go about motivating these employees?

  4. Importance of Efficiency • Maximum profit that can be realistically expected as % of gross receipts: • Hotel – 20% • Restaurant – 15% Source: “Hotel Operations Management”, Hayes & Ninemeier, Pearson, 2004

  5. Quality and Productivity Market Gains • Improved customer service • Improved reputation Improved Quality Increased Profits • Reduced Costs • Reduced compensation and refunds • Increased efficiency

  6. Customer Expectations • Essential Services - meet fundamental requirementseg. Reasonable business hours, admit or check-in guests, inform about service details, acknowledge complaints • Expected Services – guests think service provider should offereg. Convenient operating hours, payment options, reservations, reasonable information about services, facilities, locale • Optional Services – guests consider these an added bonuseg. Ambience, convenience, unobtrusive service

  7. Five Gap Model CUSTOMER Word-of-MouthCommunications Personal Needs Past Experience Expected Service GAP 5 Perceived Service ORGANISATION Service Delivery External Communications GAP 4 GAP 3 GAP 1 Service QualitySpecifications GAP 2 Management Perceptions of Consumer Expectations

  8. Closing the Gaps • GAP 1: Consumer Expectations vs. Management Perception • Close Gap • Talking to customers • Talking to customer contact employees • Marketing information systems – customer surveys – analysis by segment • Reducing levels of management • GAP 2: Management Perception vs Service Quality Specification • Close Gap • Management Commitment – resources • Use of hard and soft technology • Shift Demand • Is meeting customer expectations financially feasible? • GAP 3: Service Quality Specification vs Service Delivery • Close Gap • Training • Internal Marketing – pride • Teamwork • Reward Systems • Service Quality Audits • GAP 4: Service Delivery vs. External Communications • Close Gap • Know capabilities of firm • Good communications within the firm • Internal Marketing - teamwork GAP 5: Expected Service vs. Perceived Service

  9. Gaps Exercise • Working in groups of two or three identify gaps of each of the 5 types in organisations where you have worked. • How could these gaps be closed?

  10. TQM Total Quality Management: - • Encompasses entire organization and all its activities from supplier to customer • Stresses a commitment by management to have a continuing company-wide drive toward excellence in all aspects of products and services that are important to the customer

  11. CustomerSatisfaction Attitudes and Motivation EmployeeFulfilment How to do it QualityPrinciples Flow of Activities What to do Organisational Practices Achieving TQM

  12. Organizational Practices • Leadership • Mission statement • Effective operating procedure • Staff support • Training What is important and what is to be accomplished

  13. Quality Principles • Customer focus • Continuous improvement • Employee empowerment • Benchmarking • Just-in-time • Tools of TQM How to do what is important and to be accomplished

  14. Continuous Improvement • Represents continual improvement of processes and customer satisfaction • Involves all operations and work teams

  15. Employee Empowerment • Getting employees involved in service improvements • 85% of quality problems are due to process & material • Techniques • Support workers • Let workers make decisions • Build teams & quality circles

  16. Quality Circles • Group of 6-12 • employees from same work area • Meet regularly • 4 hours/month to solve work-related problems • Facilitator • helps ensure the discussion is effective • Needs: • support and recognition from management • training in problem solving techniques

  17. Benchmarking Selecting best practices to use as a standard for performance • Determine what to benchmark • Form a benchmark team • Identify benchmarking partners • Collect and analyze benchmarking information • Take action to match or exceed the benchmark

  18. Just-in-Time Technique of continuous improvement applied to processes that drives out waste and improves quality eg. McDonald’s • Suppliers – goods should be delivered as close as possible to the time they are used • Layouts – layout designed carefully keeping things apart that need to be kept apart but facilitating smooth flow of a process • Inventory – to be kept to a minimum • Scheduling – personnel scheduled to precisely meet demand and production in small batches

  19. TQM In Services • Service quality perceptions depend on comparison of expectations with reality • Perception of service quality derived from process as well as outcome • Types of service quality • Normal: routine service delivery • Exceptional: how problems are handled

  20. SERVQUAL • Service quality is measurable • Service is of high quality when customers’ expectations are confirmed by actual delivery of service Parasuraman, Zeithaml and Berry

  21. Dimensions of SERVQUAL • Reliability – ability to perform the promised service dependably and accurately • Assurance – knowledge and courtesy of employees and their ability to inspire trust and confidence • Tangibles – physical facilities, equipment and appearance of personnel • Empathy – caring, individualised attention and attitude of personnel • Responsiveness – willingness to help customers and provide prompt service

  22. SERVQUAL Exercise • Chose one of the SEVRQUAL dimensions • Using the SERVQUAL instrument that you have been given, write four questions which might be part of a SERVQUAL questionnaire designed to measure expectations and experience of users of the college canteen

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