Preliminary Flashcards
Focus of TQM
Customer satisfaction
Triangle
Top
Middle
Bottom
General manager, owner and consultant
Top
Manager, supervisor
Midfle
File, staff, clerk
Rank
Implementor
Manager
Followers
All sectors
Functions of management
Planning Organizing Staffing Directing Communicating Controlling
Style all function
Planning
Systematized step by step procedure
Plannin
Asks customer needs and wants
Planning
Summation, complete, whole
Total
Instruct
Directing
Inforn
Conmunicating
Directing vs Communicating
Guidance
Part of communicating
Directing
Broader than Directing
Communicating
Hire and Fire
Staffing
Train, Promotion and Demotion
Staffing
Right person at right position
Staffing
Minimize
Maximize
Monitor
Evaluate
Controlling
Level
Quality
INTEGRATION of ALL FUNCTIONS and processes within an organization in order to achieve CONTINUOUS IMPROVEMENT of the quality goods and services
TQM
Total
Management
Customers want more, something new
Approach, system
TQM
Products
Tangible
Intangible (service, experience)
Concept of TQM
“Doing the things right, first time”
2 primary objectives of TQM
Zero defects
100% customer satisfaction (loyal)
Customer satisfaction
Positive feedback
Sense of touch
Anyone who is IMPACTED by the product or process delivered by an organization
Customer
Positive or negative
Kinds of Customers
External
Internal
End user of the product
May have some connection with the product
External customer
Other divisions of the company that receive the processed products
Internal
Out of the organization
External customer
Employees or organization
Internal customer
Out of the process
Product
2 kinds of products
Semi-finished goods
Finished goods
Guests vs Customers
Treat customers like guests
Guests are studied
Behaviors observed
Wants, needs, and expectations discovered
Service product tailored to meet demands
Guests-treat as visitors
Customer-purchase simply products
Made up of organization that offer guests courteous, professional food, drink and lodging services alone or in combination
Hospitality industry
Service quality and service value are not defined by managers, auditors, or rating organizations
Mind of guest
Study of guests/profile of the guests
Guestology
Guestology is a term originated by __
Bruce Laval of the Walt Disney Company
Guest’s __ within the hospitality organization are __
Behavior
carefully observed
Their __ regarding the hospitality guest experience are __
Wants, needs,capabilities and expectations
Determined
All organization’s employees must treat customers like guests and manage the organization from all the organization’s employees must treat customers like guests and manage the organization from the guest’s point of view
Guestology
Three aspects of the guest’s experience
Service product Service setting (service environment or servicescape) Service delivery
They are carefully woven together to give guests want and expect plus a little bit more
Three aspects or elements
It’s not just an inspirational slogan; in the service-centered hospitality organization, it is the truth and everybody accepts and lives up to it
“It all starts with the guests”
It turns traditional management thinking on its head. Instead of focusing on organizational design, managerial hierarchy and production systems to maximize organizational efficiency, it forced the organization to start everything it does by looking systematically studied, modeled and predicted
Guestology
The goal of Guestology
Create and sustain an organization that can effectively meet the customer’s expectations and still make a profit
Customers come to a service provider with certain expectations for themselves, their businesses and/or their families
Meeting customer expectations
Seeks to understand and plan for the expectation of an organization’s targeted customers before they even enter the service setting
Guestologist
Persons and units that depend on each other and “serve” each other
Internal customers
Intangible part of a transaction relationship that creates value between a provider organization and its customer, client, or agent
Service
Customer oriented management philosophy and strategy
TQM
It is centered on quality so as to result im customer delight
TQM
It implies that all members of the organization make consistent efforts to achieve the objective of customer delight through systematic efforts for improvement of the organization
Total
TQM PHILOSOPHY
Evolved in Japan after WWII
EDWARDS DEMING
Fitness for use
Quality
ISO
International Organization for Standardization
The world body for standards formulation was founded on _ and has its headquarters in _,
ISO
1946
Geneva, Switzerland
Path breaking standard
Totality of features and characteristics of a product or service that bear on its ability to satisfy a given or implied need
Quality ISO 9000
It results on improved productivity as by eliminating defects, no value adding activities and rework. Additional resource capacity is created.
Quality improvement
It reduces the production cycle Tim and machine time.
Quality improvement
Product Quality
Functionality Reliability Usability Maintainability Efficiency Portability
Refers to the core features and characteristics of a product
Functionality
A set of attributes that bear on the existence of a set of functions and their specified properties. The functions are those that satisfy sated or implied needs
Functionality
Measured by mean average time between failures (MTBF). It is an indicator of durability of products.
Reliability
The customer should be able to use the product easily without the help of experts
Usability
It can also be measured by the time taken for training an operator for error free operation of a system
Usability
Refers to the ease which a product can be maintained in the original condition
Maintainability
Products may be defective while in use or in transit. It should be repairable so as to retain the original quality of the product at he lowest cost at the earliest possible time
Maintainability
A set of attributes that bear on the effort needed to make specified modifications
Maintainability
Maintainability is measured at MTTR
Mean Time To Repair
This is applicable to most products. It is the ratio of output to input
Efficiency
This is more important in the context of software. It is defined as a set of attributes that bear on the ability of software to be transferred from one environment to another
Portability
Service Quality
Quality of Customer Service
Quality of Service Design
Quality of Delivery
Customer Service is important in every business. In a service industry meeting customers and finding out their implied requirements is more challenging. There fore, ability to satisfy the customer depends on the quality of customer service
Unlit of customer service
Since services are usually made to order, it is important that the service designed as per the requirements of the specific customer. Quality of design depends on the quality of customer service
Quality of Service Design
It is important in any sector, but more crucial in case of services defects on delivery should be zero to satisfy customers
Quality of Delivery
Additional attributes of Quality:
Timeliness Aesthetics Regulatory Requirements Requirements of Society Conformance to standards
Product or service should conform to the stated and implied requirements of customers. Where applicable, they should conform to applicable standards such as national standards, international standards and industry standards
Conformance to standards
It should fulfill both the stated and implied requirements imposed by society. The customer requirement should not violate society or regulatory requirements. Thus to satisfy a customer, product cannot built in such a way as to violate the requirements of society of a safe and healthy product
Requirements of society
As stipulated by the local and federal governments should be fulfilled by the product or service
Regulatory Requirements
A product or service should not only perform well but also appear attractive therefore it is an important element of quality. It may include but not limited to the appearances of the product, finish, color, etc.
Aesthetics
Delivery on schedule as per requirements of the customer is a must both in the product sector as well as in service sector. No customer likes waiting. Any anticipated delay in schedule should be communicated to customer well in advance. It is crucial for many products and services
Timeliness
The competition for guest loyalty and currency is intense and will only grow more so in the future. New hospitality organizations spring up everyday
Meeting increased competition
Interaction between service provider and customer client or guest
Service
Guest experience
Service product+Service setting+Service Delivery system
Services can be provided by
Directly to customer
For the customer
By a person
Via technology
It is used to describe purse services as well, since the pure service provided is the product the organization offers for sale
Service product or Service package
Sometimes referring to a tangible-intangible mixture
Sometimes referring to a pure service with no tangible product
Service product
Marketing writer “There are no such things as service industries. There are only industries whose service components are greater or less than those of other industries. Everybody is in service”
Theodore Levitt 1972
Service Industries
They are not statistical entities, vague concepts or abstractions. They understand that within the heterogenous mass of people they serve or want to serve each is an individual, each is unique
Guests (Understanding the Guest)
VIP
Very important people
The first step in understanding guest experience:
Understand the guest
- Traditional demographic breakdown
- Psychographic breakdown
- Capabilities to coproduce the experience
Varied, motivates the guest focused organization to des gin each guest experience from each guest’s point of view, to offer a personalized experience insofar as possible
Understanding and appreciating guests
It is the sum total of the experiences that the guests has with the service provider on a given occasion or set of occasions
Guest experience
Setup of facilities based on design
Setting
The system consists of an inanimate technology part (including organization, and infromation, system, and process techniques) and the people part-most importantly the frontline server who delivers or presents the service, or co-produces it with the guests
Service delivery system
Process or procedure
Taking products and service given to guests
Service delivery system
It is why the customer, client, or guests comes to the organization in the first place. Most service products have both tangible and intangible elements and can range from mostly product with little service to mostly service with little if any product
Service Product/Service Package/Product Mix
Where the experience takes place
Service setting/environment
Landscape within which service is experienced, has been used to describe the physical aspects of the setting that contributes to the guest’s overall physical feel of the experience
Servicescape
Including human components, the physical production processes plus the organizational and information systems and techniques that help deliver the service to the customer
Service delivery system
Unlike a factory’s assembly line system, which is generally distant from unobservable to customers, many parts of service delivery must be open to consumers who can avail themselves of the services directly and coproduce the experience
Service delivery system
person-to-person interaction or series of interactions between the customer and the person delivering the service
Service encounter
Heart of the service
encounter between the service and the customer
It is here where emotions meet economics in real time and where most customers judge the quality of service
Encounter between the server and the customer
Period of time during which organization and the guest interact
Encounter
Length of typical service encounter will vary from –
one service provider or organizational type to another
Service encounters or interaction especially _ within them are obviously of critical importance to the guest’s evaluation of service quality, they can make or break the guest exoerience
Critical moments
The former president of Scandinavian Airline Services (SAS) coined a term to refer to the key moments during these interactions and to some brief encounters or interactions themselves
Jan Carlzon
Moment of truthd
Make or break moments/ First impression
10-15 seconds
Encounter a problem has occurred-preventive action
Critical incident
Dwayne Gremmler
Nature/Characteristics of Services
Services are partly or wholly intangible
Services are consumed at the moment
Services usually require interaction between the service provider and the customer
Preventive action
Phillip Cosby
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 is delivered and the service product’s delivery
Services are partly or wholly intangible
Organizational systems must be carefully designed to ensure that the service is consistently produced so that each guest has a high quality experience
Working from the guest backward
Instead of concentrating on top down managerial control systems to ensure consistency and employee predictability, hospitality organizations must focus on
Employee empowerment
Hospital, medical, professional
Service provider present
Customer present
Lawn service
Jewelry repair
Service provider present
Customer not present
Electric/gas/phone/internet utilities, ATM, vending machine
Service provider not present
Customer present
On-line store and travel services, technical help lines, answering services
Service provider present
Customer not present
Difference between the quality that the guest experience or of any part of it is defined as the difference between the quality that the guests expects and the quality that the guests gets
Quality
Equation of Quality
Qe=Qed-Qee
Qe
Quality of the guest experience
Qed
Quality of the experience as delivered
Qee
Quality expected
Equation of value
Ve= Qe/All costs
Ve
Quality of the guest experience with
Lying, dishonesty, unfairness
Told the truth and treated fairly
Harsh, disrespectful treatment by employees
Treated with respect to
Carelessness, mistakes, broken promised
Receive mistake-free, careful reliable service
Employees without the desire or authority to solve problems
Receive prompt solutions to problems from empowered empowered who care
Waiting in line
Wait as short time as possible
Impersonal service
Receive personal attention
Inadequate communication
Kept informed
Employees unwilling to make extra effort
Receive assistance
Employees who don’t know what’s happening
Receive accurate answer
Employees who put their own interests first
Have customer’s interests first
Costs
Price Opportunity costs Time Risks Intangible Financial Non-financial
Who defines quality and value?
GUESTS ONLY
Represents a promise to guests of what the quantity and value of experiences associated with that will offer them
Brand image
Can also extent cost/symbol
Brand name
Hospitality planning follows an ongoing cycle that begins at the big picture level and ends in
VISION STATEMENT MISSION STATEMENT SERVICE STRATEGY SERVICE-SETTING STRATEGY ACTION PLANS
Long looking around for opportunities and threats, in turn defines the strategic premises which are beliefs of the managers assessing all long term aspects of the external environment and trying to use them to discover what forces will impact their business in the future and especially what customers will want in the future environment
Environmental assessment
Will be the intermediate-term and longer term future
Key drivers or value dirivers
Defines the organization’s core competencies and considers the organization’s strong and weak points in terms of ability to compete in the future
Internal assessment (strengths and weaknesses)
The organization determines what it does or doesn’t do well and how its strength and weakness pair with what it wants to accomplish
Internal assessment (strengths and weaknesses)
Include the powerful tools of statistical forecasting
Quantitative forecasting tools
Includes scenario building, Delphi technique and pure creative guesswork
Qualitative forecasting tools
Assessing the environment
SWOT ANALYSIS
Baby boomers
1946-1964
Generation X
1965-1980
Generation Y (Millennials, Echo Boomers)
1977-1997
Generation Next/ Next-Gens
Born after 1997
The hospitality organization draws conclusions about the future of its industry and market from its industry and market from its environmental assessment, and then uses this information to make the assumptions
Strategic premises
Five trends by Dave Thomas (founder of Wendy’s) 1969
People wanted choices People fed up with poor quality People trying to adjust a newer, complicated way of life People were on the move People were ready for an upscale place
The searching look within
Internal audit
Internal assessment
Bundle of skills and technologies that gives the organization an importance difference in providing customer benefits and perceived value
Core competencies
Includes an assessment of all the organization’s internal assets
Internal audit
Articulates what the organization hopes to look like and be like in the future
Vision statement
Articulates the organization’s purpose, the reason for which it was founded and for which it continues to exist
Mission’s statement
Berry’s 4 components of Excellent service
Quality
Value
Service
Genuine achievement
Managing the scale of units of capacity to maximize the profitability of the capacity
Yield management/Revenue management
Refers to everyone and everything that interfaces with guests
The show
Walt Disney
This strategy can be used for an amusement oark, a restaurant, hotel, cruise ship or any place where the hospitality experience would be enhanced by adding some fanfasy
The show
Can effectively tie all the elements of the service experience together
Theming
Contributes to maintenance of the fantasy, enhances visual stimulation, and helps find one’s way around with the visual cues it provides
Theming
It gives guests something to talk about after they’ve gone home, it reinforces their remembrance of what they’ve done, it can create an emotional connection with the experience, and it provides additional confirmation of the experience’s value
Theming
An opportunity for the organization to add wow to the experience by providing more than guests expect
Theming
To maintain the illusion of fantasy in a themed service setting, the experience, as is true of ant good story, must be -
controlled and focused
Having the attention of guests engaged in specific things that will reinforce the experience or a story, is carried forward in
Architecture
Important service setting element, it’s a particularly potent environmental factor
Sound
Designed to maximize each guest’s experience by managing the visual and auditory aspects of the setting
ECS Entertainment Control System
Why is the environment important?
Positive effects on employers
Influences guest expectations
Created and maintains the mood
Key parts of the service product and carefully plan their service settings to ensure that each component adds to the theme that tied the whole experience together
Environment
Environmenr
Guest expectations Guest mood Employee satisfaction Setting as part of service Functional value of a setting
5 environmental components
Functional convergence Use of space Signs, Symbols, Artifacts Other people Ambience
Refers how the equipment and furnishings are arranged in the hospitality service setting, the size and shape of those objects, their accessibility to the customers and the spatial relationships among them
Use of space
Refers to the ergonomic factors such as temperature, humidity, air quality, smells, sounds, physical comfort, and light
Ambient comditions
Help the guests to know where they are and how to find their way to where they want to go
Space layout
Serve name the business, describe product or service, and give direction
Signs
Symbol
Artifacts
Explicit physical representation of information that the organization thinks guests might want, need, expect or find
Signs
Refers to how well something with a functional purpose fits into the environment which serves that purpose
Functional congruence
Easy to read, clear and located which convey a message through the use of symbols often language itself
Signs
General perception or whole picture that guests draws from the countless individual environmental factors (perceived service environment)
Butjer, Servicescaoe
Factors that moderate individual responses
Moods Demogrwphics Purposes Characteristics Personal traits
Guest can respond to service setting:
Physiologically
Emotionally
Cognitively
Physiological responses
Senses
Information Processing
Rich and lean environments
Cognitive responses
Emotional responses
Nonverbal cues and coomunication
Expectations and the servicescape
Results primarily from the serviceescape’s effects on the guest’s senses
The senses
Help when guests are expected to be unfamiliar with the setting or when to process a lot of information
Information lean environment
Guests are familiar with the setting or have few choices to make
Information rich environment
