AMJAD ALI(SP19-MBE-012) TERMINAL(B.C.

S)2021

Questions:
Paul Stackhouse has hired you as consultant. Now respond to the following questions in order to
assess and address the issues.
1. What is your assessment that how applicable was TQM to the service-based industry?
Introduction

Total = Quality involves everyone and all activities in the company.

Quality = Conformance to Requirements (Meeting Customer Requirements).

Management = Quality can and must be managed.

TQM = A process for managing quality; it must be a continuous way of life; a philosophy of
perpetual improvement in everything we do.

Today, quality in a product or in a service is considered as being very important for the
success of a business. The concept of TQM has now been accepted as an integrated
management approach which basically support to improve services. Internal customers,
namely employees it is very important to provide quality and execution innovative services to
external customers.

Implementation of TQM in service sector

The following steps are proposed for the implementation of TQM service system:

• Step 1- Formulate the service quality strategy

• Step 2 - Analyze service process and define quality measures

• Step 3 – Establish process control system

• Step 4 – investigate the process to identify improvement opportunity

• Step 5 – Improve process quality

PRINCIPLES OF TQM WHICH ARE IMPORTANT FOR SERVICE INDUSTRY

An Organization should have a well-defined Vision, Mission with regards to Service Quality
policies. There are several important aspects that are of pertinent to Service Organization, if it
has to deliver quality service.
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Kaizen and the principles of 5S:

The KAIZEN methods have been internationally acknowledged as methods of continuous

improvement, through small steps, of the economical results of companies. The small
improvements applied to key service processes generate a major multiplication of the
Organization’s profit, while also constituting a secure way to obtain the clients’
loyalty/fidelity. The “5S” technique represents a basic technique that allows the enhancement
of efficiency and productivity, while at the same time, ensuring a pleasant organizational
climate.

KAIZEN stands for improvements towards achieving economy and increasing productivity.
The principles of “5S’ consist of SEIRI (Sort), SEITON (Orderliness), SEISO (Cleanliness),
SETKETSU (Standardize), SHITSUKE (Self-discipline). When Kaizen and 5S are applied in
tandem, the service to customers gain a great fillip.

Six Sigma Standards:

There are several critical success factors that are required to be considered while applying Six
Sigma. To list a few of them: it is very essential that top management is committed to
implementing Six Sigma; employees in all departments must have adequate training in order
to implement six sigma effectively; the company’s culture and values must adjust properly
for implementing Six Sigma; the Six Sigma initiative must be focused on the customer. Six
Sigma is basically reduction or elimination of errors, or it is the elimination of ‘deviations’ in
providing effective customer service, viewed strictly from the customers’ viewpoint and
customers’ expectations.

Training, Motivation, Rewards and Recognition

Rewards and recognition can serve as powerful tools for employee motivation and
performance improvement. Rewards may be in terms of cash bonuses, stock awards, perks,
etc. Non-cash awards may be formal/informal recognition, assigning more enjoyable duties,
giving more responsibilities in decision-making. Rewards maybe also for innovation to
provide unique services, or on ideas to minimize or eliminate costs Training plays a very vital
role in the success of organizations in the service sector. Profitability of the organization in
this sector can depend to a great extent on the service delivered to the customers by its
employees. However, before any kind of training is delivered the management is required to
identify the training needs within their organizations in order to succeed and attain the desired
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outcomes of the training program. Conducting a well-planned Training Needs Analysis will
determine how many employees of the organization should be short-listed for training with
their appropriate education and experience. In addition, this process will also allow help the
organization in the comprehensive customization of its training programs for all departments
to meet the training and development needs of the employees to meet the growing market
competitiveness.

Elimination of unwanted operations:

Muda is all about wastefulness and work that adds no value in given effective, beneficial
customer service. It is probably the most often quoted of the 3Ms. Muda application to
service industry must be identified with the seven types of deadly wastes identified by
TaiichiOhno.

Mura is unevenness in delivering effective service. It relates to a widely varying workload

within the service departments. This is often tied in to a German word Takt for the pace of
work needed to meet the customer demand.

Just-In-Time addresses many of these subcategories of waste. It ensures that the right things
are at the right place and at the right time so that the targeted level of demand is met.

Muri addresses over-burdening and unreasonable work. If, for example, the staffs who are
meant to deliver effective service are asked to do more work than they should actually do,
they generally resort to shortcuts or, they hand over the work to others which potentially adds
to their Mura and Muri. In many organizations such as healthcare, hospitality, education, it is
very important to look at the burden of decision-making as well as the burden of work.
Asking people to make too many, or, inappropriate decisions quickly leads to errors and loss
of quality. Stress, therefore, is often a sign of Muri. So, in every quality improvement
initiative, an organization has to think about reducing the 3Ms which are very highly relevant
to service quality too.

QUALITY TOOLS FOR PERFORMANCE MEASUREMENT

In Service Sector, performance measurement is not as easy as in manufacturing industries.

Service sectors such as hotels, hospitals, hospitality, government organizations, and education
institutions should have a different tape-measure for performance measurement.
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This personal touch improves employees’ involvement and motivation. Indian service sector,
however, generally resorts to issuing memos/show cause notices/open rebuttals, etc., and the
management then expects the employees to be motivated. Personal touch is generally absent.
Feedback and appraisal systems are welcome. But the immediate superior may err due to
personal grudge, favoritism, etc. The feedback about the immediate superiors from the sub-
ordinates should also be taken, in confidence and in all fairness. One sided feed-back
boomerangs on the management in terms of poor motivation and performance because such
feed backs are generally used against the employee.

AWARDS AND APPRECIATION

When employees do show improved performance, they should be genuinely appreciated

immediately. Even customers, who give valuable, practicable suggestions, too should be
immediately appreciated and their suggestions should be considered for implementation. The
image of the Organization gets a boost and today, image sells. In Service Sector, the awards
instituted and appreciation letters issued to the employees should be based on level of
customer satisfaction, innovative methods of working by the employees to improve
productivity, reduction in the various wastes within the Organization (as described by
TaiichiOnho), extent of learning at the job, application of training skills.

METHODS OF IMPROVING PERFORMANCE IN SERVICE SECTOR

SERVICE SECTOR Quality Circles and establishing Quality Improvement teams among the
employees is very beneficial and productive. Brain-storming sessions and introducing the
Delphi Method brings forth useful ideas for better customer satisfaction. Job satisfaction and
employee performance go hand-in hand. To deliver quality services to the external customer,
the internal customers (employees) should be satisfied. To achieve this, there must be:
positive and encouraging impact of the management on the employees, appropriate training
and education of employees with regard to what exactly the management expects from and
out of them, establishment of rewards, and recognition of innovative ideas, encouraging
cooperation and teamwork among employees. Again suitable Quality Control Tools (either
parametric or non-parametric) should be judiciously introduced to measure performance
levels. Quality cannot be inspected into an employee; it has to be built into him/her. Issuing
of memos, show-cause notices, letters seeking explanation, must be avoided. Instead, involve
teams (akin to the ANDON system of TOYOTA) to resolve errors and deficiencies using
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Gemba methods (tackling at the workplace itself). An employee must be considered as a part
of an Organization.

Q#2: How successful had he really been with his pilot project to implement a continuous
quality Improvement program in the Cambridge Suites Hotel?

He is successfully implement a contnious quality improvement program in the Cambridge

Suits Hotel through these steps:

Step 1 Executive team interviews

Step 2 Strategic Planning and Executive Commitment to Quality Principles

Step 3 Management Orientation and Commitment

Step 4 Breakthrough Project Workshop

Step 5 Breakthrough Project Work

Step 6 Debriefing of Breakthrough Projects

Step 7 Full Staff Role-out of CQI concepts

Step 8 Planning for the Future

 Step 1 - Executive Team Interviews

The project consultant interviewed all members of the executive team individually to reveal
their respective perspectives on Cambridge Suites' mission, vision, values and critical
outcomes. This information is synthesized and analyzed for feedback in Step 2. This is the
starting point - a snapshot of the hotel's current location.

 Step 2 Strategic Planning and Executive Commitment to Quality Principles

The executive team consists of four members: the manager, his assistant, the controller, and
the sales director. The move is scheduled to take two days with the main objective of getting
the support of the other three members of the executive team. Paul's concern is that if any of
these key people do not add their support to the pilot project, they can secretly and effectively
try to thwart its progress. These initiatives could change their role in management if
successful, and some may question why, when they are already?
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 Step 3 Management Orientation and Commitment

The management group grew to ten - the four executive were joined by six department
managers. The objectives for this session were:

1. To identify what Continuous Quality Improvement was and/or was not.

2. To list the components of CQI.

3. To describe the “look” of a CQI organization.

4. To explain the jargon and tools of CQI and where they “fit.”

5. To identify the roots of CQI.

6. To assess the readiness of their organization to make the transition to CQI.

7. To identify initial breakthrough improvement projects and project team Membership.

Paul and executives reviewed the results of Phase 2 and explained why they believe in quality
management. Once again, the goal is to gain the support of department managers and lay the
groundwork for the next steps. The same is true for the police. If this group does not
participate in the process, these efforts could quickly derail.

This group lists potential projects that the development team can focus on. From a short list
of six, two projects were selected. Reduction in energy consumption, and reduction in
administrative paperwork. Both areas were chosen because the group believes it can set clear,
measurable goals for each project.

 Step 4 Breakthrough Project Workshop

1. Explain the results of the project clearly.

2. Determining time frame, standards and responsibilities as well as setting them

Appointment schedule.

3. Explain the team role and group solving process.

4. Confirm group membership.

5. To effectively facilitate teams and coach others to guide teams.

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6. Develop appropriate reporting procedures and communications Vehicles

 Step 5 Breakthrough Project Work

First, the junior staff felt somewhat apprehensive about their placement and participation in
the teams, as well as sitting down with senior management to resolve and plan the problem.
Some could not understand why they were asked to participate because they were small paper
users or knew very little about energy conservation. Police saw the potential reduction in the
purchase of front-line employees as a major obstacle to success. These employees had never
been involved in this decision-making process in the past and had expressed some doubts.
Employees were paid to attend meetings and some were given extra time on their project
after their regular working hours.

 Step 6 Debriefing of Breakthrough Projects

Participants in the breakthrough project were given an explanation of how the process
worked for them, what improvements could be made, what they had learned, future
engagements and other issues. This information is collected and analyzed by management
and consultants to consider future implementation strategies. The following quotes represent
what some of the participants had to say about their CQI experience:

“The first few meetings were more of a process of feeling and becoming aware of various
aspects of energy reduction. Even with my new knowledge, I still doubt that a housemaid, a
chef, two maids and a general manager will be able to reduce the $ 20,000 utility bill. The
only hope on my mind is that our maintenance supervisor has to help us through the whole
project because he deals with electricity on a daily basis. My doubts were cleared as the week
went on and ideas flowed from everyone. I can tell the group about some areas that are
wasting energy and they can tell me about other areas they are concerned about. This raises
the level of awareness and we can move forward in efforts to reduce energy consumption,
"said team member Jay George.
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Q#3. How can he implement a true quality management initiative which focuses on
longer term success and which also fulfills the corporate need for short term tangible
results?

A total quality management must involve employees, customers and suppliers in order to be
successful.
There are many aspects of successful total quality management (TQM) program
implementation. First and foremost: it must involve every employee in your business--from
the very top levels to the temporary, part-time staff. You must also obtain regular customer
feedback and you must implement changes where warranted by that feedback. Just as you
need to drive home the message of quality to every employees, you must also work with
suppliers who meet your

Steps to Implementing a Quality Management System

 Successful organizations have figured out that customer satisfaction has a direct
impact on the bottom line.

 Creating an environment that supports a quality culture requires a structured,

systematic process.

Following are steps to implementing a quality management system that will help to bring the
process full circle.
1. Clarify Vision, Mission, and Values

Employees need to know how what they do is tied to organizational strategy and objectives.

All employees need to understand where the organization is headed (its vision), what it hopes
to accomplish (mission), and the operational principles (values) that will steer its priorities
and decision making. Develop a process to educate employees during new employee
orientation and communicate the mission, vision, and values as a first step.

2. Identify Critical Success Factors (CSF)

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Critical success factors help an organization focus on those things that help it meet objectives
and move a little closer to achieving its mission. These performance-based measures provide
a gauge for determining how well the organization is meeting objectives.

Some example CSF:

 Financial Performance
 Customer Satisfaction
 Process Improvement
 Market Share
 Employee Satisfaction
 Product Quality

3. Develop Measures and Metrics to Track CSF Data

Once critical success factors are identified, there need to be measurements put in place to
monitor and track progress. This can be done through a reporting process that is used to
collect specified data and share information with senior leaders.

For example, if a goal is to increase customer satisfaction survey scores, there should be a
goal and a measure to demonstrate the achievement of the goal.

4. Identify Key Customer Group

Every organization has customers. Those that understand who the key customer groups are
can create products and services based on customer requirements. The mistake a lot of
organizations make is not acknowledging employees as a key customer group.

Example Key Customer Groups:

 Employees
 Customers
 Suppliers
 Vendors
5. Solicit Customer Feedback
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The only way for an organization to know how well they are meeting customer requirements
is by simply asking the question. Create a structured process to solicit feedback from each
customer group in an effort to identify what is important to them.

6. Develop a Survey Tool

Next, develop a customer satisfaction survey tool that is based on finding out what is
important to customers.

For example, customers might care more about quality than cost but if you are developing a
product and trying to keep the cost down and skimping on the quality, you are creating a
product that might not meet the needs of the customer.

7. Survey Each Customer Group

Create a customized survey for each customer group. This survey will help to establish
baseline data on the customers’ perception of current practice.

Obtain feedback directly from your customers.

Do you have a regular feedback method to confirm when your company is doing its job well
with customers, or to detect problems when it is not? How timely is the feedback? Is it
actionable? Once customers know that you are interested in feedback, your company must act
on what they say and then provide status reports or presentations on the successful disposition
of each problem or opportunity

Q#4.Had he been able to satisfy both these objectives? Support your response with
arguments.

Why should you implement a Total Quality Management (TQM) program to achieve quality
assurance? There is one simple answer; when properly planned and implemented TQM will
provide substantive financial benefits to your business and add to the bottom line. Let’s
consider just two examples of how using Total Quality Management can help your business.

Use TQM to Improve Customer Satisfaction

Justification:
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A primary focus of TQM and most Quality Management Systems is to improve customer
satisfaction by having a customer focus and consistently meeting customer
expectations. Customers are almost always satisfied when their expectations are met. When
they expect a certain product or service, and you deliver it without problems and at a fair
price, you’ve built a solid customer relationship. Happy, satisfied customers become repeat
customers and they provide word-of-mouth marketing – the most powerful kind.
There are three Total Quality Management components that work toward achieving customer
satisfaction:

1. It requires that your business understand what customers typically expect in a

field, industry, or product line,
2. It ensures your business has the expertise and the resources to consistently deliver
the expected product or service, and
3. It emphasizes the need for your business to clearly communicate to the customers
exactly what you will deliver to avoid misunderstandings.
TQM provides the quality assurance that customers will get what they expect, as well as a
process for managing unsatisfied customers, make needed corrections and prevent similar
reoccurrences.
Explore the tools you need to achieve TQM. Check out QAD Quality Management Products.
Every business owner and manager knows the importance of satisfied customers, and how
expensive it is to find new customers compared to keeping current customers. Business
research clearly shows that there is a direct correlation between satisfied customers and
revenue. If your business doesn’t have a clear path to creating satisfied customers, then it can
benefit from TQM.
TQM Provides Long Term Competitiveness
Justification:
Being able to satisfy customers while operating effectively and efficiency is truly the recipe
for financial success and stability. If you achieve these quality assurance goals that are part of
Total Quality Management, then you will likely be in business for a long time to come.

Notice that with TQM, quality is not just about a product or service meeting (somewhat
arbitrary) requirements. It is about how the whole organization operates to understand
customer expectations and competitively deliver customer satisfaction.
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TQM Improves Business Efficiency and Effectiveness

Justification:

While focusing on the customer is critical to success, it isn’t the only factor. A business can
go broke sparing no expense to make customers happy. So not only does a business need to
satisfy customers, but it needs to do it in a way that is. A business also has to look within and
understand its own operations, another important role of a quality management system.
Total Quality Management places a focus on internal processes, including

 How processes align to produce desired outcomes to satisfy customers

 How consistently processes deliver desired outcomes (effectiveness)
 The productivity of a process compared the resources used (efficiency)
Being able to consistently produce desired outcomes without wasting resources like time,
material, and money is critical for a business to make it over the long haul.

Q#5.What steps can be taken to bring all employees/stakeholders on-board?

10 CRITICAL STEPS TO GETTING YOUR STAKEHOLDERS ON BOARD

 Try to mandate one person to establish the basic parameters and business rules for
your incentive program before inviting stakeholders to participate.
 After you socialize the project internally, identify who is involved and who is not and
answer any questions or concerns.
 Outline what timeline you want to follow. Use lots of visual tools to keep
stakeholders engaged and informed.
 Identify and approach stakeholders outside your immediate team and even outside
your organization who should be included in the plan, such as IT, Finance and Legal.
 Empower all stakeholders, align them with your company strategy, incorporate their
questions, concerns and expectations in the process.
 Segment information according to what is important to individual stakeholders and
stakeholder groups.
 Use visual aids, meeting notes and checklists to keep people engaged and informed on
what is important to them.
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 Ask stakeholders to adhere to the agreed schedule during the status meeting, but
remain flexible and offer solutions to deadline challenges.
 Nurture the stakeholder spirit. A collaborative team working together to a common
goal will work together to stay on track.
 If there are multiple stakeholders or business units involved, hold a launch meeting to
discuss the project prior to launch.

4 CRITICAL STEPS TO GETTING YOUR EMPLOYEES ON BOARD

1. Define Your Organization's Key Results

Key Results are the three to five meaningful, measurable, and memorable organization-wide
objectives around which your employees' efforts should be aligned. Despite the importance of
these goals, our Workplace Accountability Study revealed that only 15% of organizations
clearly define and effectively communicate the Key Results they need to achieve success.

Once the company's Key Results are determined, the next step to building accountability in
the workplace is to articulate them in a digestible way and ensure that all employees fully
understand what is required to achieve these objectives.

It's crucial for employee buy-in that individuals understand the ways in which their daily
actions can help or hinder the achievement of Key Results for the entire organization.
Managers play a key role in making this connection for employees when they point all
discussions around expectations and priorities back to the Key Results.

2. Practice Positive Accountability in the Workplace

One of the most common problems in the workplace is blocking integration and lining up
around key outcomes. When a benchmark target is missed or a project goes off the rails,
employees may be tempted to say something along the lines: "Well, that wasn't my job." This
attitude prevents consequences, and adapts to a culture of "everyone for themselves" instead
of "we all share".

3. Establish Open Lines of Communication across the Organization

To unify your organization, it is important to promote a culture of free communication.

Instead of an environment where employees are eagerly awaiting a boss's opinion, foster a
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workplace culture where every member of the organization feels comfortable giving and
receiving opinions on a regular basis.

By encouraging quick feedback loops, you are creating a culture where every employee has a
clear idea of their responsibility and is comfortable coming to you for clarification.
Accountability comes naturally when employees are not afraid to seek opinions and are
willing to share their opinions with others.

4. Track Employee and Team Progress Towards Company Goals

Leaders are responsible for regularly communicating and reinforcing both organizational and
individual objectives, and laying the groundwork for meeting these goals.

Ensure that there is a set, organized system of tracking progress so that each employee clearly
understands his or her role in achieving Key Results. Take advantage of weekly group
meetings, biweekly check-ins, or one-on-ones to measure progress towards these goals,
realign around common objectives, and keep employees accountable for results.